By | 2008-03-08 00:00:00
Shares have soared up by the push of steel sector recently. The price of wire rod, deformed bar and medium plate have increased a lot, up 13.1%, 11.8% and 6.2% than the beginning of November respectively, and an increase of 42.0%, 45.4% and 31.1% than the beginning of the year. Hot-rolled steel coil and cold-rolled steel coil up 8.3% and 5.0% than the beginning of November, 17.9% and 8.7% than the beginning of the year. Because wire rod and deformed bar are widely used in the building industry, so the companies handling the steel products will benefit the most at the market.
By | 2008-03-08 00:00:00
China cut the 13% export rebate tax on steel fasteners to 5%, which applies to goods clearing customs starting July 1, Fastener & Fixing Europe reports. The move is likely to impact existing orders for importers since few factories will absorb the cost increase. The rebate change is expected to affect all popular fastener items, although definitive list has not yet been published. The move is part of the Chinese government's effort to reduce the export rebate tax on most goods. Overall 2,831 categories of goods, accounting for 37% of Chinese exported goods, are impacted. This includes the elimination of the tax on 553 high energy consuming, high polluting and resource-intensive goods. The rebate was cut on the remaining 2,268 other product types, including shoes, clothing and metal and plastic products. Reducing domestic subsidies is aimed at easing the record trade imbalance between China and other countries. During the first five months of 2007 Chinese exports rose 23.7% to $801.3 billion, while imports increased 19.1% to US$357.8 million. The trade surplus of $85.7 billion surged 83.1% over the first five months of 2006. F&FE editor Phil Matten reported that China aims to achieve a balance between imports and exports by 2010 as it attempts to boost domestic demand and rein in overseas sales of energy-intensive products. "Sources (in China) noted potential for trade conflict with the U.S. and Europe and pressure for appreciation of the RMB by as much as 40%," Matten stated. Some have argued that other Asian countries with fastener capacity, such as Thailand and Vietnam, could now compete with the price of standard fasteners from China. But Matten noted that many of these countries are largely reliant on Chinese wire rod, so they will see increased costs for their raw material, offsetting fastener price increases from China.
By | 2008-03-08 00:00:00
The total output of fasteners in China will reach over 600 million tons in 2010, of which exporting volume is set to be 300 million tons, indicating that China will be global manufacturing base of fasteners. How will the Chinese fastener be affected by the dramatic increase of fastener export? Although there are various different opinions among insiders, they all admit that Chinese fastener export has come to a pivotal point, which needs our careful consideration and recognition to map out what Chinese fastener will do in the next phase. First Concern: Fastener export features with scattering, small and low-profile In recent years, thanks to the rapid development of fastener industry, Chinese fastener export sees dramatic expansion, which has become something someone uses to brag about. According to some statistics, China exported fasteners to 52 countries and regions in 2005, among which EU, USA and Australia are the largest importers. The total export volume increased by 26%, reaching 150 million tons, and overtook Taiwan Province to be the fastener base. Despite of the thriving growth in Chinese fastener export, however, in the terms of exporting, many fastener enterprises were faced with problems of being scattering, small and low-profile. Based on some figures in 2005, among the 246 fastener exporting enterprises, there were 45 which exporting volume was 500 million dollars, only accounting for 18.3%. of the total and 0.6% of all Chinese fastener enterprises. This, obviously, showed that the fastener exporting enterprises were located dispersedly, most of which were small in scale, and many of them sought foreign orders individually, with low recognition of brand, management and technical content, which left them limited profit margin and less competitiveness. Second Concern: Low technical content Some experts estimate that in 2010, the total global trade volume of automobile products will reach 1200 billion dollars, and the purchasing volume of fasteners in low-cost countries by multinational automobile giants would be 200 million dollars in 2007, among which 70% will flow into China. In view of this, Chinese fastener exporting must adhere to the main direction of localized manufacturing. Meanwhile, many foreign companies suggest that fasteners should be made in China directly, which gives us a great opportunity to upgrade products levels and improve products development to set a foot in the field of automobile and construction, and to gradually alleviate and shake off the influence and control by foreign companies, which will make domestic companies take a lead in its own development. It¡¯s noted that most of the exported fasteners from domestic companies are some kind of low technical content, which could be replaced easily by some other lower-cost countries if we wouldn¡¯t further improve the technical content and cut cost. According to some insiders, domestic fastener companies must take technology, service and cost as their core task, building up comprehensive competitiveness featured with moderate industry scale, characteristic service and low cost Third Concern: Foreign capital flows back In the past few years, many multinational giants from USA, Japan, South Korea and Germany rushed to China to open their own factories. Up until now, there are over 200 foreign-invested factories here, with the total assets accounting for 25% of Chinese fastener industry. Most of them concentrate along the coastal areas of Pearl River Delta, Yangtze River Delta and Jiaozhou Peninsula, with the main products being automobile fasteners of high added-value, high precision and high intensity, through which the overall level of our fastener industry is due to promoted and improved.
By | 2008-03-08 00:00:00
In accordance with Article 48of Anti-dumping Regulations of the People¡¯s Republic of China, the duration of anti-dumping duty shall not exceed 5 years. However, if termination of the anti-dumping duty may possibly incur the continuation of dumping and injury or reoccurrence of dumping and injury upon review, the duration of anti-dumping duty may appropriately prolonged. As from release of this announcement, natural persons, legal persons of or those represent domestic industries or related organizations may put forward final review applications in written to Ministry of Commerce 60 days in advance of the expiration of relevant anti-dumping measures. The applications shall contain sufficient evidence to approve that the termination of anti-dumping duty may possibly incur the continuation of dumping and injury or reoccurrence of dumping and injury. When natural persons, legal persons of or those represent domestic industries or related organizations fail to put forward final review applications in written in line with this Announcement, and Ministry of Commerce doesn¡¯t decide to take initiative to carry out final review before the termination of the anti-dumping duties, the original anti-dumping measures shall be terminated as from the date of expiry. Ministry of Commerce Dec 3, 2007
By | 2008-03-08 00:00:00
Mr. Fanyulong, the vice-chairman of China General Machine Components Industry Association, Mr. Dinghaijun, the vice-chairman of Fastener Association Branch both declared it's unreasonable of EU's antidumping against Chinese steel fasteners. Mr. Fan and Mr. Ding said, firstly 98% of fastener companies in China are private enterprises, which have struggled in market economy for more than 20 years. Therefore, Chinese fastener industry has experienced enough competition, and its export trade is completely independent, without government's intervention, supporting and control. Besides, it's not a fact that our country encourages fastener export since fastener industry consumes a lot of steel. Secondly, we never dump our products. As we know, compared with developed country, the cost of labor and material(steel) are cheaper in China, as a result, the price of our fastener products is lower of course. We know dumping means someone sell their products with the price lower than the cost, however, Chinese fastener companies have experienced enough competition in the market economy, so they would never do business at a loss, by contraries, they export fasteners to profit. Thirdly, Chinese fasteners have never hurt European market. Most of the exported fasteners are in medium lower grade, which are not produced in Europe, so our exported fasteners are complementary and favorable to European market. Meanwhile, European countries also export many medium top grade fastener products to China, even some of European manufacturers invest in China. Chinese market has always opened its door to Europe. Now, EU countries take anti-dumping against those products they don't produce, which will bring affects to them.
By | 2008-03-08 00:00:00
Chinese steel export prices continue to witness downward adjustments on concern the probable increase in export tariff rate would further dampen steel exports, which in turn would direct more cargo back to domestic markets. Export market is quiet since most steel makers and traders employ wary attitude in face of policy and market risk. HRC Chinese HRC prices continue to go down amid rumor of imminent increase in export tariff rate. Commercial 4.5 mm to 11.5mm*1500mm HRC are being offered at CNY 4080 per tonnes, down by CNY 130 per tonnes, 1800mm material at CNY 4450 per tonnes to CNY 4520 per tonnes. 2.75mm HRC remain at CNY 300 per tonnes a decrease of CNY 80 per tonnes to CNY 100 per tonnes. HDG After rebounding to CNY 5100 per tonnes from CNY 4800 per tonnes, prices for 1.0 HDG by Anshan Steel which is regarded as base are now slipping down. In Shanghai, 1.0mm HDG drop by CNY 20 per tonnes to CNY 5080 per tonnes; quotations for 0.5mm HDG by private steel mills go down by CNY 20 per tonnes to CNY 30 per tonnes to CNY 5550 per tonnes to CNY 55570 per tonnes. HDG is expected to follow the downward adjustments of HRC and CRC. HR plate Export offers for hot rolled steel plate offers are still on the rise in China, bolstered by robust overseas demand and firm domestic market prices. Among others, ship plate and high end plates enjoy much higher prices and they are actually the export engines. Most tier two steel makers have raised offers for SS400/Q235 HR plate to USD 710 per tonnes to USD 730 per tonnes FOB and up in line with domestic market. But the rise has led to fewer transactions at moment. A North China based steel mill is quoting S275JR plate at USD 720 per tonnes FOB base and S335JR USD 735 per tonnes FOB base, early November shipment. The offer require equal share of the possible increase in export tariff rate. Another neighboring steel maker, who mainly produces high value added plates, is quoting at USD 20 per ton higher for the same products and also ask buyers to born all the loss if there is policy change. Traders attribute its high price to its small output of commodity grade plate. Long products Rebar and wire rod prices continue their downward adjustments in Chinese domestic market. In Shanghai, HRB335 20mm rebar is being offered at CNY 3840 per tonnes to CNY 3850 per tonnes, HRB400 material at CNY 4020 per tonnes down by CNY 30 per tonnes to CNY 40 per tonnes. Wire rod has also dropped to CNY 3850 per tonnes to CNY 3870 per tonnes.
By | 2008-03-08 00:00:00
The modern fastener industry sees a huge upgrading space for current technology, which, in turn,can bring about rapid development. This is reflected in two factors. On the one hand, the development of modern economy puts forward lots of higher standards to fastener manufacturing , such as emission reduction, energy cutting and higher capacity, etc. On the other hand, the mass production offers strong support for the equipment upgrading and technology advancement of the fastener industry. Beginning from July, the reduction of exporting rebate tax has affected domestic fastener enterprises greatly, imposing new challenges on Chinese fastener industry, which can be seen as an invisible force for the industry to innovate. Fastener industry entering macro- innovating period The new "innovation atmosphere" marked by the transition from low-end and low-profile fastener products to mid/high-end and high-profile products, plus the innovation activities in the macro level of extending and deepening can be helpful to domestic industry. First, it is conducive to the forming of systematic innovation project and making breakthrough in hi-end products, which, in turn, can make the foundation for innovative ideology and strategy of Chinese fastener industry. Second, it helps to put some new inventions into use in many fastener enterprises, promoting the fastener industry to a creative one featured with characteristic of our times. Establish the new innovative system of fastener industry For the establishment of the new innovative system, the mechanism innovation is important, which is a prerequisite for the improvement in the all-round structure and quality of domestic fastener industry. In addition, the strategy innovation, reflected as the way in which the innovation of the fastener industry must aim at industrialization, is also crucial. In this special timing, each fastener enterprise must make its own direction, just to fulfill the anticipated results of innovation. In the terms of economic and social development, the innovation system must give the ideologies of sustainable development and "Green Manufactured" a full play. In the terms of equipment, the equipment manufacturing industry is the kind that has substantial influence on the fastener products. According to some experts, China will still be the global largest market for fasteners, with its fastener industry still being in the period of stable and rapid development. What's more, riding the wave of globalization acceleration, our domestic fastener enterprises can go overseas for a larger market. All this together, the advantages of Chinese fastener market are incomparable to any other countries, and the development will be due to continue. In view of this, reinforcing the ability and level of self-innovation in Chinese fastener industry by actively grasping the opportunity to take advantages to make for the disparity is top of the agenda for domestic fastener industry.
By | 2008-03-08 00:00:00
China and the European Union (EU) will establish a high-level economic and trade dialogue by the end of March next year to address issues including trade imbalance and China's market economy status. According to a Joint Statement of the 10th China-EU Summit issued on Monday, the dialogue is designed for vice-premier level discussions on strategies in China-EU trade, investment and economic cooperation and coordinate bilateral projects, studies and develop plans in priority sectors, It will cover issues affecting the trade imbalance, including effective market access, intellectual property rights, environment, high technology and energy, among others. Statistics with China's Ministry of Commerce indicated China's surplus with the EU, China's largest trading partner, reached $91.7 billion in 2006, but a paper issued by the European Union Chamber of Commerce in China, predicted China's trade surplus to the EU could top 200 billion euros ($260 billion) by the end of this year. The statement said the Chinese Minister of Commerce and the EU Trade Commissioner will meet as necessary to prepare this mechanism and its agenda. It said the dialogue also includes sessions to review the concerns of China including progress on the issue of Market Economy Status (MES) made on other occasions. The statement mentioned in particular that "a working group involving the People's Bank of China (PBOC) and European Central Bank (ECB) will deal with the exchange rates related issues." It said the two sides agreed that concerted efforts are needed "to adopt comprehensive measures, intensify structural adjustment, and avoid drastic movement of exchange rates", in order to "make due contribution to the orderly adjustment of global imbalances." The 10th China-EU Leaders' Meeting, which was convened in Beijing on November 28, saw the presence of Chinese Premier Wen Jiabao, Prime Minister Jose Socrates of Portugal, which currently holds the European Union (EU)'s rotating presidency, and European Commission President Jose Manuel Durao Barroso.
By | 2008-03-08 00:00:00
In recent years, our country's export of fastener industry increases quickly. China has become a large country in export of fastener products around the world. Nowadays, although fastener in foreign trade develops fast, the problem of unreasonable product structure in export still exists; we are still expanding market through increasing product quantity, the products have the problems such as low quality-grade, low price, etc. The main markets we enter are overseas maintenance and spare parts markets, only a few products enter the main machine-support market and most of the delivery made by OEM without having our own brands. In 2007, China's fastener industry is paid much attention by global fastener field. In the present excellent situation of globalization, China's fastener industry should be confident in improving our products' quality and strengthening our products' development. The present development of fastener industry takes on a trend of "Centralization, Informationization and Service", which is very favorable for the rapid development of fastener industry. Centralization. That means, the fastener companies are comparatively concentrated, for example, places like Guangdong, Ningbo, Wenzhou, Jiaxing, Yongnian, Haiyan, Pearl River Delta and Yangtze River Delta gather the similar and adjacent companies through the local fastener association, obtaining the competitive advantage by continuous innovation. Informationization. Along with the further expansion of competitive spaces and ranges in fastener market of enterprises, the management idea of how to manage and make use of enterprise integrated resources effectively by enterprise informationization. Using ERP system to manage the logistics, fund flow and information flow all-in-one, the core of it is realizing "Supply chain management". At the moment, IT technology power of many medium and small enterprises is not enough, but they still consider enough to bring in ERP system and want to benefit from the management. Service. The current fastener enterprises are many, what they consider about include the whole process from market research, product development or improvement, manufacture and production, sales, after-service to recovery, ranging over the whole life cycle of products, reflecting the spirit of serving customers and society. As the globalization economic coming, China's fastener enterprise are or prepare to be transformed to something like "service industry" and "information industry". Although China's fastener industry development appears the trend in three aspects, speeding up the fastener industry, the various kinds of competition among the enterprises also aggravates continuously. In the first-half of 2007, the high increase of fastener industry lasts the situation of 2006. It's estimated that in the second-half of the year, the increase speed of fastener is 12%-15%, the stress of raw material price rise can be stood or digested by enterprises. Compared with other manufacturing industry, the increase speed of fasteners will still be in the front rank. Feng Jinrao, the president of fastener association of CGMA said, nowadays, there are more than 50 enterprises in fastener association making annual sales over 100 million. That can be said that small bolt creates large market.
By | 2008-03-08 00:00:00
Chinese demand for industrial fasteners is projected to see annual gains of 9.4 percent to 40.2 billion in 2010. The Chinese industrial fastener market will outpace growth in most other parts of the world, driven by rapid growth in manufacturing production, especially industrial machinery, motor vehicles, and electrical and electronic products. In addition, industrial fastener demand will also be driven by expansion and modernization of China's infrastructure and building construction activity. Standard fasteners to remain the dominant type Standard fasteners will continue to dominate the industrial fastener market through 2010, benefiting from increases in manufacturing production and construction activities. Non-threaded sales will grow by ten percent annually through 2010, stimulated by rapid growth in durable goods, as well as by further technological innovations in non-threaded fastener design. Externally threaded fasteners will remain the largest category of standard fasteners through 2010 as they are least likely to be replaced by joining methods like adhesives and welding. Aerospace-grade fasteners to post outstanding gains Aerospace-grade fastener demand will grow fastest at twelve percent per year through 2010. Demand will be spurred by government investment in non-building construction and commercial and military aircrafts. In addition, aerospace projects such as China's first moon landing, scientific recoverable satellites, solar research and the aerospace shuttle Shenzhou VII will support demand for aerospace-grade fasteners through 2010. OEM market to shift towards highly engineered and specialized fasteners The OEM sector will remain the largest Chinese market with 9.5 percent annual growth through 2010. The shift toward more highly engineered and specialized fasteners, which are priced at a premium, is expected to support demand increases. Industrial machinery accounts for the largest segment in the OEM market, benefiting from strong increases in industrial machinery production. Motor vehicles is the second largest fastener segment behind industrial machinery. The motor vehicle production trend toward larger, more fastener-intensive luxury vehicles will support demand in this segment. In addition, the increased use of more engineered fasteners, potentially including intelligent design types, and continued adoption of more safety, entertainment and other accessory systems will provide opportunities for fastener suppliers. The electrical and electronic product market is expected to see the fastest demand increases through 2010 within the OEM sector, benefiting from rising income levels. Construction to remain fastest growing market Demand for fasteners in the construction market will increase nearly eleven percent per year through 2010, outpacing gains for all other markets. Demand will be driven by government funding for large-scale infrastructure construction and government promotion of private home ownership. In addition, improving quality and performance characteristics, such as the ability to endure temperature extremes, vibration and corrosive elements, will also stimulate demand in the construction market.
