New screw duties are set to drive up the cost of bicycles

With a number of factors pushing up the cost of bicycles and other consumer goods across numerous industries, another one is now being thrown into the mix – by design – thanks to the European Commission, which has opted to increase the price of imported fasteners, including screws and connectors.

Like most other commodities over the past 19 months, screws and other fasteners have seen prices rise thanks to a combination of factors including spiralling shipping costs, container disbursement, raw material prices and factory capacity.

Now fastener prices are set to significantly rise again as the European Commission has announced it is likely to increase duty on fasteners from China as part of a year-long anti-dumping investigation.

Anti-dumping duties are now likely to be placed on screws and other iron and steel fasteners from China. The increases will be significant – the standard added duty to be applied will be 86.5%. A 39.6% duty will be applied to a limited group of Chinese fastener exporters.

Fastener associations representing importers and wholesalers, including EFDA, have labelled the move “incomprehensible” and added: “The EU is creating a permanent supply problem for the European industry, thereby putting ‘Made in EU’ at risk…”

EFDA added: “The planned duties will hit all sectors of European industry, craft, and commerce as well as European consumers, all of which depend on the reliable supply of fasteners manufactured to international standards. These ostensibly simple, low value pieces of precision engineering – whether bolts, screws or washers – are indispensable for the manufacture of cars, bicycles, washing machines, solar panels, combine harvesters, furniture, and trains, as well as for use in installation and repair work by craftsmen or for repairing the garden door or attaching a picture in one’s own home.”

While screws and other fasteners contribute a small cost towards products like bicycles, manufacturers (in Europe) will hardly welcome another cost driver being thrown into the mix.

Those looking to switch fastener supply away from China to avoid the price rises will be faced with a significant challenge. Other fastener producing nations, such as Taiwan, have been in significant demand, not least since the US has looked to source more from the island as part of its ‘trade war’ with China.

There’s more on the topic via Torque Magazine.