U.S. / Israeli bombings in Iran have nearly halted Hormuz Strait shipping, causing spot rates to Europe to surge $1,000 above contract rates plus surcharges. The hike is squeezing fastener manufacturers in Taiwan who already pressured by low-cost Chinese fasteners, Fastener World reports.

In 2025, China’s fastener exports continued to grow, rising 6.7% in volume to 6.23 million tons and 4.1% in value to $11.92 billion despite a 2.4% decline in average export price. Driving this surge, Chinese fastener exports to major EU economies climbed to $2.06 billion, surpassing the U.S. to become China’s largest export destination.

Meanwhile, Taiwanese manufacturers note that China’s low-price dumping and intense internal competition have customers using Chinese quotes to pressure Taiwanese suppliers for lower prices, according to Fastener World.

Taiwan’s comparatively high costs make it hard to compete, cutting standard fastener prices so severely that some Taiwanese firms are rejecting orders to avoid losses.

In steel trends, cold heading material imports from South Korea surged 395% in 2025 to 26,857 tons, according to Taiwan China Steel Corp. statistics. Manufacturers shifted orders because Korean material is 10-15% cheaper, with cold heading mainly used for automotive cold-forged bolts, nuts, etc.

While Taiwan and the U.S. renegotiated reciprocal tariffs to 15% in January, Taiwan fastener exports still face a 50% tariff under Section 232 provisions applied by the Trump administration.