In recently, Baogang had announced that they reached a consensus with Rio Tinto’s Company which is the one of main world iron ore suppliers: during 2008, Rio Tinto's mine PB powder, Yang Di powder PB block ore mine and the benchmark price in 2007 will be on the basis of rising 79.88 percent, 79.88 percent and 96.5 percent. This is not only bad news for steel industry, but also has adverse effect on fastener industry which is mainly composed by steel. Yesterday, Jinyi Group and Beijing Standard Industry Group and furthermore more than 40 national fastener giant responsible for the relevant people participated Haiyan Fastener Hardware City, consulting together the industry development plan.
The president of China General Machine Components Industry Association and Fastener Professional Association said: In the last few years, the unprofitable news of fastener industry has been keeping pouring in. The appreciation of China Yuan has decreased competitiveness of enterprises’ export commodities. A descent of export tax rebate has made reduction in the enterprises’ profit space, and the current steel price which has been rapidly increasing would directly lead to product cost rising. Furthermore, the long and bitter conflict of European Union Antidumping has been existing, in a word, above things have made the whole of national fastener industry face domestic disturbance and international pressure. In the key moment, all enterprises in this industry should integrate to stick to each other, to speak in the same voice, as long as keep doing this, the difficulties will be easier to overcome. This is also the main reason why we gather here. All present people are representatives from domestic different regions’ strengthen enterprises which occupied certain market share, should play a leading role in navigation”
From a state-owned enterprises in Shanghai were responsible for the statement: "In the past, enterprises, especially small businesses to snatch the low-priced orders of the phenomenon is still relatively, but in the current RMB exchange rate" cracking 7 ", the export tax rebate rate from 13% to 5% , Or even zero-tax rebate and imposed tariffs and the steel price stay in high situation, such an act tantamount to the phenomena that remedy is worse than the evil., it is easy to wear down the entire industry Furthermore it is much easier to bankrupt all the enterprises. Thus, we first need self-discipline on the basis of not destroying Housing Industry Development. It suggests that all present enterprises should play a leading role. Secondly, we should integrate. As long as integrate, we can not only become much stronger but also have more speak right when we negotiate businesses with foreign.
The merits of integration clearly show. Jinyao Feng introduced, take an example of European Union Antidumping, China Fastener Professional Association spent 1 million China Yuan to hire a famous lawyer named Brussels. If the case finally wins, 500,000 China yuan more will be given to him as reward. Such large cost seems difficult to be afforded by any individual enterprise. Had been doing a great deal of work to influent EU’s Policy-level and even to make EU specially set up a team of investigators which was sent to China to survey, the lawyer did not disappoint the Association. It did happen as never before. Furthermore, the members of Association who all work together have been trying to influence each purchaser. By now, there are many EU’ Associations to change the previous sides, all opposing the case of EU’S Antidumping to pass.
“As long as self-discipline, the industry of Fastener could only develop stably and healthily; as long as integration, we could only take advantages of these aspects which are raw material purchase, merchandise export, and trade dispute. Therefore, we should try to go toward the direction of self-discipline and integration.” Both Fastener Professional Association Vice-President and Ningbo’s fastener Association President Yulong Fan said. As for this opinion, The Associations of Guangdong, Wenzhou, Haiyan, Hebei and furthermore chief officers of Jinyi Group, Jiaxing Brother Enterprise, Ningbo Donggang Enterprise had all agreed and discussed to adopt concrete operating methods.
