Mattress importers moving to Taiwan, Bangladesh, India
NEW YORK – Mattress importers are shifting operations from Vietnam, Thailand and Cambodia to Taiwan, Bangladesh and India, according to a report by Piper Sandler.
Piper Sandler, who is based here, says the moves are in response to the high provisional anti-dumping duties assigned to Vietnam, Thailand and Cambodia.
“Mattress production already appears to be shifting,” the company wrote in a report on the impact of the provisional anti-dumping duties announced in late October.
“Based on our industry discussions, we believe the overly prohibitive anti-dumping tariffs for Thailand, Cambodia and Vietnam are due to the fact that these were the main countries Chinese manufacturers moved to in early 2019 to avoid the anti-dumping rates for China,” said Piper Sandler . “We understand that some (if not all) of these manufacturers are moving back to Taiwan, Bangladesh and India. These manufacturers are now relocating all equipment and employees to the new countries in order to enable a more efficient restart of production. “
Piper Sandler said mattress import prices could potentially rise from 5% to 15% due to production changes and relocation to new countries. But domestic manufacturers are also increasing their prices by a comparable amount in the fourth quarter.
The provisional determination of the anti-dumping duties for Thailand ranged from 573% to 763%. For Cambodia it was 253% and for Vietnam 191% to 990%.
Piper Sandler said domestic manufacturers “could see modest short-term benefits in the fourth quarter and early 2021” as the preliminary determinations of anti-dumping duties were announced. “However, we assume that the import dynamic will normalize again by mid-2021,” said the company.