Market Update August 2025
.png "Market Update August 2025")
While many customers and colleagues are enjoying a well-deserved summer vacation, part of the Kobout team remains on hand every day to serve our customers as efficiently as possible. Summer is also an excellent time to reflect on the first half of the year and consider recent market developments.
Geopolitical Developments
The fasteners market is highly internationally oriented: the majority of factories producing bolts and nuts are located in Southeast Asia. As a result, the sector is sensitive to geopolitical developments.
Currently, we notice that many factories, particularly in China, are struggling to export their products to the United States due to high import tariffs. In their search for alternative markets, some producers are almost desperately turning to European buyers. In the race to offer the lowest price, inferior raw materials are sometimes used, leading to negative consequences for product quality.
At Kobout, we consciously choose continuity and reliability. We remain loyal to our trusted suppliers with whom we have been working successfully for many years. Quality and long-term relationships continue to guide us, especially in a rapidly changing market.
Price Developments
Over the past few months, there have generally been few significant changes in the price levels of high-quality fasteners. Many of the factors influencing prices – such as exchange rates, oil prices, and sea freight costs – have remained relatively stable or offset each other, resulting in a fairly constant pricing situation. Additionally, global demand for fasteners does not appear to be significantly increasing, which keeps prices under pressure and relatively low.
At the same time, we observe two clear exceptions to this trend:
- Stainless Steel Prices: Since the end of last year, stainless steel prices have shown a steady decline.
- Price Increases for Specific Products: On the other hand, prices for threaded rods, U-bolts, stud bolts, hook anchors, and J-hooks have risen significantly in recent months. This increase is due to anti-dumping measures imposed by the European Commission aimed at protecting the European market from unfair competition.
Outlook
Although delivery times are currently generally normal, we expect an increase in delivery issues from the Far East in the coming months. The main reason for this is the imminent introduction of the CBAM regulation (Carbon Border Adjustment Mechanism).
Many importers are trying to bring additional stock into Europe before the end of the year to avoid the levy that will take effect in January 2026. This stockpiling is putting extra pressure on the production capacity of factories and may also lead to bottlenecks in available transport capacity, both in the short and medium term.
Of course, we have anticipated this development and do not expect any issues with deliveries to our customers.
CBAM: What Does This Mean for the Market?
The exact amount of the CBAM surcharge is still unknown at this time. We remain in close consultation with the relevant authorities, our suppliers, logistics partners, and other stakeholders so that we can anticipate any price and delivery impacts in a timely manner.
Based on our most recent calculations, however, we expect the price-increasing effect to be limited. While CBAM will undoubtedly affect import costs, there are no indications that the impact will be extreme. Naturally, we are monitoring the situation closely and will inform our customers promptly as soon as more clarity is available.