With cold heading wire prices in Europe set to increase dramatically within weeks - one forum participant confirmed that €250 per tonne would be added to his production costs in July - and Asian raw material costs continuing to ramp up, Mr Matten saw little sign of inflationary pressures abating.

He went on to detail the impact of bulk sea freight, currency exchange trends, as well as energy and labour costs on the prices of finished fastener products from Asian and European sources.

While current circumstances were exceptional and some level of correction was inevitable, if very difficult to predict, he argued that a long term inflationary trend for fastener products appeared an unavoidable reality, leaving the supply industry and its customers no choice but to come to terms with it.

Consolidation meant a more structured steel market, more specialisation, a tighter balance between supply and demand and more robust market pricing, he said. A small number of powerful mining companies, together with the major steel players had savoured strong profits over recent years, and were intent on holding on to them.

The prospect that the European Commission may, within a matter of weeks, apply antidumping tariffs on an extensive range of fasteners from China, threatened to further exacerbate the situation, the forum audience was told. A protracted EU investigation, which started in November 2007, meant growing uncertainty for fastener importers as the 9 August 2008 deadline for a decision on preliminary antidumping tariffs drew nearer. Depending on investigators’ interpretation of one of the most complex antidumping cases addressed by the EU, the application of tariffs could, quite feasibly mean fastener prices doubling year on year.

One forum attendee seemed to sum up the feelings of many. “It’s tough to hear but this presentation gave me the clearest understanding of these issues I’ve obtained from any source. Phil’s final reminder about the cashflow implications of these increases is something I’m taking straight back to my business. All we have to do now is get our customers to recognise that fastener companies like mine are on the receiving end of pressures that are simply outside of our control.”

The Open Forum at which Phil Matten spoke was an innovation at the UK & Ireland’s regular ‘must attend’ get-together, Fastener Fair Coventry, which took place on 11 and 12 June 2008.

The next Fastener Fair Coventry is scheduled for June 2010.

 www.fastenerfair.com