China Fastener Giants Raise Export Price about 30%
Author: ChinaFastener.com
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Date:
2008-7-14
Source: www.ChinaFastener.com
Source from the Jiaxing Fastener Industry Symposium said that the winter of fastener industry has gone and the spring is at hand. In the first half of this year, the sales value of fastener giants in Haiyan City has increased greatly, with a growth of 30% than the same period of last year.
Recently, fastener industry has confronted with severe challenges from appreciation of RMB, price rising of raw materials and heightened trade frictions. “However, from another aspect, enterprises have learned to control costs. Although face the soaring price of oil and steel, we are equal to the occasion.” Mr. Gu Weiping, CEO of Jiaxing Brothers Fastener Co., Ltd.
In order to save energy and limit emission, Jiaxing Brothers Fastener has introduced a new set of equipment, which can save the cost of products 3,500 RMB per ton. Also, the company has built a dock near the New Bridge of Hangzhou Gulf, which can make every container save about 100 to 150 RMB. In addition, they adopt the forward settlement of exchange to get away from exchange rate risk. “I have noticed that the exchange rate between RMB and US dollars is 6.85 today, but according to the forward contracts we signed, our exchange rate is 7.3 today.” Mr. Gu said.
Of course, the essential way for development is to increase the technology content of their products. Jiaxing Brothers Fastener, together with a steel plant in Beijing, Zhejiang University, China national center for Quality Supervision and Test of Standard parts, jointly set up Zhejiang Hi-Tek Standard Parts R&D Company, which specialized in research and development of high tech. products. At present, the high strength products of Jiaxing Brothers Fastener account for more than 50%, and the added value of the products has increased from RMB 4,000 per ton to RMB 9000 per ton.
Warehouse
The enterprises adjust themselves initiatively to accustom the harsh environment, and the change of environment also brings new opportunity. “It is difficult to sell some products before and we have to keep them in the warehouse. However, as the rise of steel price, the price of these products also rises.” Mr Shen Jiahua, Director of Haiyan Fastener Association and General Manager of Haiyan Yuxing Nuts Co., Ltd said, the maximum benefit comes from the rise of factory price. Due to the surging rise of iron ore price, the fastener giants have adjusted their price; the margin reach to 30%. Although the International buyers have complaints, they have to accept the fact.
"The environment of fastener industry will be much better in the latter half year. And the sales revenue will return in August. By that time, the enterprises will have money to invest, develop and expand their production. So the spring comes." Mr. Shen said. Now the annual sales value of Yuxing Nuts has reached 350 million, but only has 23 million bank loan.