The South African Iron & Steel Institute filed a complaint for the South African Fasteners Manufacturers Association, according to a March 4 announcement by the World Trade Organization.
T&I Chalmers Engineering (Pty) Ltd - which constitutes about 70% of production - submitted the original “injury analysis information” for bolt ends, screw studs and screw studding.
Injury analysis for other hexagon nuts was submitted by Transvaal Pressed Nuts, Bolts & Rivets (Pty) Ltd., CBC Fasteners (Pty) Ltd and SA Bolt Manufacturers (Pty) Ltd., which together manufacture 90% of South African production.
“The applicant alleged and submitted prima facie information to indicate that it is experiencing serious injury in the form of a decline in sales volumes, market share, gross profits, net profit and low capacity utilization” for the period from July 1, 2014, to June 30, 2019.
The information filed by South Africa fastener manufacturers shows the “industry was suffering serious injury, which could be causally linked to the surge in the values of imports of the subject products.”
The announcement stated that the “applicant indicated China is the world major producer of fasteners. Therefore information on unforeseen developments focuses on the developments in China.
According to the applicant, “the Chinese significant influence and developments with regard to fasteners will have an impact on the world developments.”
During the Uruguay Round of negotiations, “South Africa did not foresee an “unprecedented steep rate of increase in the global fastener production capacity, which was mainly fueled by the growth of the Chinese and Asian fastener market” and steep increases in fastener production and exporting.
The information also pointed to the “economic slowdown of the Chinese economy and the global contraction in demand.” Combined with the “financial crisis of 2008 to 2010 had an impact on the demand for fasteners and with increased production created an imbalance between supply and demand, which added to increased export volumes.”
The information noted a “significant unused production capacity of carbon steel fasteners in China,” which “led to an increase in trade remedy actions against fastener products (including the subject product) by countries such as Canada and the United States.”
Fasteners include iron and steel threaded fasteners, bolt ends and screw studs, screw studding and other hexagon nuts of iron or steel (thus excluding stainless steel and those identifiable for aircraft).
Importing “increased sharply both in absolute terms and relative to domestic production” for four years beginning July 2014.
