Side Story: New Ruling May Force Higher Blade Prices

The U.S. Court of International Trade ruled recently on appeal in favor of an anti-dumping lawsuit, filed by the Diamond Saw Blade Manufacturers Coalition, contenting that diamond blades imported from China and Korea were driving down diamond saw blade prices and harming the industry.

Brian Delahaut, VP and general manager for MK Diamond Products Inc. in Torrance, Calif., says the court's ruling will impose duties on all imported diamond saw blades, possibly beginning this month. MK Diamond, Norton Construction Products, and other manufacturers testified in 2006 that lower priced imported blades actually helped and stimulated growth of the diamond blade market.

"The imposed duty will raise prices on these very important commodities to the industry," Delahaut says. "There could very well be some significant price increases imposed once the duties are applied. Duties range from 18 percent to 163 percent of the import value of the diamond blade."

A diamond saw blade could jump from $20 to $50, and masonry contractors aren't going to understand why, Delahaut says.

"What's going to happen is that dealers and contractors are going be faced with higher prices for the same blade you're buying today, and there's nothing we can do. There's no recourse," he says. "With the economy the way it is, this could have a huge impact on companies that are struggling to keep costs down."

Once these duties go into effect, the impact will be felt immediately.

"My costs are going to go up the day it happens," Delahaut says, noting that masonry dealers and contractors need to talk to their diamond blade suppliers to find out if the suppliers are going to be faced with these impending duties, and if they are, how this will impact their pricing.

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