An Overview from Viking regarding
the Anti-Dumping Petition and it's effect on Nail Prices
There has been plenty of speculation about what the results of the Preliminary Determination for the Anti-Dumping Petition would have on market pricing for pallet nails. The Final Determination is due this summer and is anticipated to be very similar to the preliminary determination.
This anti-dumping petition for “certain steel nails imported from China and the United Arab Emirates” was filed with the US International Trade Commission in May 2007 by a small group of domestic nail manufactures. The petitioners include Mid Continent Nail Corporation, a significant supplier of nails to the pallet industry.
On January 16th the US Department of Commerce delivered their preliminary determination; tariffs ranging from 20.77% to 118.04% for China imports. Bulk pallet nails are included in the petition; a 29.36% tariff was first assessed and then amended to 19.12%.
This tariff is in addition to already dramatically higher steel prices coupled with rapidly escalating ocean and inland transportation costs. Expectations are for higher steel prices as global demand for scrap steel continues to grow and pricing for iron ore is predicted to increase sharply. These and other issues including a weakened USD have contributed to a volatile pricing environment for nails.
Viking remains steadfast in our commitment to you, our valuable Customer! We realize your Company will be affected by these higher prices. We are aggressively perusing options to minimize the impact by searching for alternative sources, challenging all our suppliers to improve their efficiencies along with scrutinizing all related costs.
We appreciate your continued business, support and understanding of the current supply environment. Please contact us direct at 763.586.1209 (Paul) or 763.586.1210 (Joan) to discuss your individual requirements and the price change as it relates to your particular situation.
