Overview of China's Metal Fastener Exports to the EU Market

China is the world's largest producer and exporter of metal fasteners, with the EU being a significant export market. In 2021, China exported approximately 4.03 million tons of metal fasteners to the EU, totaling about $9 billion. The main products include bolts, steel nails, nuts, self-tapping screws, and wood screws. In recent years, China's metal fastener exports to the EU have shown rapid growth due to factors such as the EU's economic growth, the completeness of China's industrial chain, and proactive market expansion by enterprises.

Impact of the EU's Carbon Tariff on China's Metal Fastener Exports

In February 2023, the EU's Carbon Border Adjustment Mechanism (CBAM) was officially implemented, imposing carbon tariffs on high carbon emission products like steel and aluminum to promote the EU industry's low-carbon transition. The metal fastener industry in China, being a high carbon emission industry, will be directly affected by CBAM, manifesting in several ways:

Increased Export Costs, Reduced Profit Margins: Chinese metal fastener companies will need to pay carbon tariffs for products exported to the EU, increasing production costs and reducing profit margins.

Reduced Market Competitiveness: The EU's carbon tariffs will raise the prices of Chinese metal fasteners in the EU market, reducing their competitiveness. Local EU companies and low-carbon products from other countries will gain a larger market share.

Forced Industry Upgrading: The EU's carbon tariffs will push the Chinese metal fastener industry to transition to low-carbon practices, improve production processes and technological levels, and reduce carbon emission intensity.

Suggestions for Chinese Metal Fastener Export Enterprises

To address the challenges posed by the EU's carbon tariffs, Chinese metal fastener export enterprises should adopt the following measures:

Strengthen Carbon Emission Management and Reduce Carbon Emission Intensity:

Optimize production processes and improve energy efficiency;

Use low-carbon materials and new energy sources;

Enhance waste recycling and utilization.

Actively Participate in Carbon Trading Systems to Obtain Carbon Emission Quotas:

Offset carbon emissions by purchasing carbon emission quotas to reduce carbon tariff costs.

Strengthen Communication and Cooperation with EU Customers to Jointly Address Carbon Tariff Challenges:

Collaborate with EU customers to develop low-carbon products;

Negotiate with metal fasteners importers to share the carbon tariff costs.

The EU's carbon tariffs pose both challenges and opportunities for China's metal fastener exports. Peak Fasten Tech is actively taking above measures and more to tackle challenges, seize opportunities, achieve low-carbon industry transformation and upgrading, and enhance their competitiveness in the EU market.