Analysis: China's fastener market size and industrial advantages

In recent years, the overcapacity of fasteners in China and the soaring of raw materials, the survival of the fittest, and the introduction of new products are signs of the healthy development of the industry. With the overcapacity and product saturation, the cold heading steel wire rods continue to rise. In fact, the raw material trend is the impact of the international environment.

The fastener industry is an industry that depends on raw materials, and rising raw materials will naturally increase the production cost of fasteners. Under the current situation, fastener companies should promptly adjust product structure, control the scale of investment, and reduce non-productive expenditures. This is undoubtedly also positive. The main reasons for the steady increase in the prices of raw materials in China are the control of the production capacity of the iron and steel industry to ease the relationship between supply and demand. The state has strengthened the macro-control of the iron and steel industry and the steel market has a rank development. Second, the decrease in steel imports and the increase in exports are conducive to stabilizing prices. Again, market confidence has been restored. Operators and production customers are optimistic about the market demand and dare to purchase and open positions.

In recent years, the growth rate of fasteners in China is 5%-10%, and the demand for fasteners in 2008 was 3.13 million tons, an increase of 9.5% year-on-year. Among them, the automobile industry is the largest user, followed by the maintenance of the industrial market and the construction industry. Then there is the electronics industry. In order to stimulate domestic demand, the government has introduced a number of policies to support manufacturing. In the government's 4 trillion yuan investment plan, the focus is on railways, highways, airports, power grids, and affordable housing infrastructure. The most direct benefit is the equipment manufacturing industry. This will greatly stimulate the demand for fasteners. In particular, the demand for high-strength fasteners with 16-30mm specifications ≥10.9 will increase rapidly. In addition, the development of the aviation industry has also played a strong supporting role in the demand for fasteners. For example, the Boeing Company plans to add 3,400 new aircraft in the future. This data will bring new development and demand opportunities to the fastener industry.

As China's fastener industry is formed spontaneously, it must have its own unique characteristics: First, small scale. Fastener companies are rapidly adapting to the ever-changing market demands with their flexible management methods and have achieved rapid development. The second is a large number. At present, there are more than 2,200 enterprises in family workshops or couples and small-scale processing booths. This is an unparalleled quantity in any region and a huge industrial cluster has formed. The third category is all. From the most primitive processing methods to advanced multi-station cold heading machines, from red to heat-treated and tempered automatic production lines, the fastener industry covers almost all products and processes of the entire industry. The fourth is low cost. All production plants are private enterprises. The business owners are both factory managers and technicians, salesmen, and the monthly salary of production line workers is between 500 and 800 yuan. Enterprises from the management mechanism and cost accounting are incomparable to coastal enterprises.

After a long period of development, fasteners have a certain industrial base and advantages. All varieties, the fastener market, including most of the fastener products, a variety of specifications and types of products up to thousands of species. A market can purchase all the necessary. Excellent prices, fast-famous fasteners known throughout the country. The production enterprises are privately-owned enterprises, which have low costs and flexible operating methods, making Yongnian Fasteners very competitive. With a wide network and tens of thousands of sales outlets, the sales force has spread all over the country. Almost all county-level listed towns have Yongnian fasteners operating sites. Functionality, fasteners market including logistics and distribution, catering, accommodation, finance, post and telecommunications, communications, purchase convenience, fast delivery.

A few days ago, the European Union issued an official announcement and decided to launch an anti-circumvention investigation on China's re-export of European fastener products via Malaysia. The European Union stated that since the implementation of anti-dumping measures on Chinese fasteners, the number of Chinese products that have transshipped to the EU market through Malaysia has continued to increase, and continued dumping at low prices has severely weakened the effectiveness of the existing anti-dumping measures.

Previously, Malaysia had fewer fasteners exported to the European Union. In recent years, China has five or six large export enterprises to set up factories in Malaysia, and through its ports to export to the European Union, the local exports to the EU have increased two or three times, causing The attention of the European Union. In fact, the EU has great demand for fasteners that are made in China, and Chinese companies are also reluctant to export products to the EU.

The European Union has recently conducted investigations on a number of related companies, including companies that have built factories there. Whether its products can obtain the "ID card" originating in Malaysia depends on whether the added value achieved in Malaysia's assembly process exceeds 25% of the production cost.

If the European Union rules that our company has anti-circumvention facts, it will impose the same anti-dumping tariffs and even punitive tariffs on the same products imported from Malaysia. If there is indeed a re-export trade, it is also hoped that such means can be resolved through consultations. Some companies may not understand the local laws and trade rules. If it is indeed a local investment and establishment of a factory, there should be no problem. There is a company in Jiaxing producing in Malaysia, but it is not much. At present, all countries are staring at us. Although the company is still alive, it is very difficult to live. Going overseas to set up factories can be regarded as the best way to avoid trade risks.

With such cruel competition today, it is indeed not an easy task for foreign trade-oriented companies to switch to the domestic market. This difficulty is not only caused by their inherent internal thinking, but also caused by the intensification of external competition and changes in the market. Exported products must be successfully expanded domestically. On the basis of the advantages of their products, they must strengthen the construction of the marketing management system, enhance the execution of marketing, and make their own quality products acceptable to the domestic market. , Build sales channels, improve R&D levels and forge an outstanding domestic sales force, and then build a customer's domestic sales platform.