By | 2008-03-08 00:00:00
China will strengthen supervision of exports and ban those which will lead to environmental pollution, said Zhang Lijun, vice- director of the State Environmental Protection Administration (SEPA). Mr. Zhang said ¡°environmental protection departments will set up a database to collect information of those exporters who violate environmental protection rules and also keep details of efforts made to clean up their act by these exporting companies.¡± Mr. Zhang said the SEPA would enhance information exchanges with the Ministry of Commerce to strengthen the supervision. The SEPA and MOC have issued a notice earlier that exporters would be banned from trading abroad for one to three years if they were found seriously violating environmental protection rules. Analysts said the measures were the harshest ones the MOC had adopted to crack down on environmental violations in the last four years. There has been a shift in the style of punishments doled out by the SEPA to polluters in recent years.
By | 2008-03-08 00:00:00
"Facing the opportunity of manufacturing low-cost fasteners, we must pay most attention to the fastener quality, through which we can grab more market share to expand domestic market, and strive for global market as well!" The need of foreign automobile companies and machine companies to cut cost is stronger day by day, thus emerges the trend of buying fasteners from China. According to some statistics from China Fastener Association, the output volume of fasteners reached 4,3 million tons last year, up by 14% , with the exporting ratio of over 30%. All this came without any prediction, making domestic fastener companies, which have been competing in domestic market for years, find their own direction. It¡¯s can¡¯t be denied there are some bottlenecks in domestic fastener industry,such as small scale, weak R&D capability, and mass sales of low-profile fastener. Given this condition, some insiders think that domestic fasteners can't regard the "low-price policy" as their core guideline, and only by entering the high-end market all over the world can they obtain more profit and higher reputation. Overall, the exported fasteners from China currently are labor-intensive products, however, we feel that the level of the entire industry is upgrading. Although there are some problems in the business transaction like quality and delivery time, foreign companies will lose the best time to improve themselves if they won't purchase from China and accumulate resources and experience. After some five or ten years, maybe not any multinational companies can survive in China, neither can any international fastener enterprises make their name here, but it doesn't mean all domestic fastener brands will disappear. The key point for both to survive in Chinese market is to give their strength a fullplay. Seeing more and more foreign fastener companies rush into China, we must create our own strength to compete with them. After all, in the terms of technical content and technology, domestic companies are legged behind their foreign counterparts a long distance. All in all, facing the opportunity of manufacturing low-cost fasteners, we must pay most attention to the fastener quality, through which we can grab more market share to expand domestic market, and strive for global market as well! So as to survive in fierce market competition, our domestic fastener companies must reinforce various capabilities like R&D, quality control, innovation and precision manufacturing. We must be aware that in the global market of low-cost competition, the real weapon for us is offering products with excellent quality and reasonable price, which can give our domestic companies a chance to wrestle with foreign counterparts. From www.chinafastener.com Translated by Alan
By | 2008-03-08 00:00:00
The Overall Strategies According to the insiders¡¯ analysis, the export rebate will face further decrease and be apt to be withdrawn in the near future. Export enterprises are advised to make the preparation in advance to avoid the loss caused by the decrease in export rebate. First, Enhance Bidding Export Accounting In order to enhance the price competitiveness, many enterprises have taken export rebate into account in product pricing. It is the key strategy for enterprises to enhance bidding export accounting and consider well the potential impact caused by adjustment in export and the possibility of export tax, which will leave more gap of profit for the enterprises. In the long term, the enterprise should not rely on export tax rebate to earn the profit or treat the export rebate as the main part of profit. They should take the possible export tax of resource products into account. Zhejiang Qifeng Hardware Make Co., Ltd. located in economic development zone in Haiyan, Zhejiang Provice, is a professional manufacturer with more than 10 years' experience in hardware industry. Mr.Yu Yanjun, the Sales manager, told us in the interview that starting from the emergent shipment in June, 19, Qifeng has shipped 20 containers of product in one month which is two times as usual. Although the shipment is effected on time, the company still suffers three million losses and the decrease in purchase orders in the next three months. As to the price negotiation with foreign purchasers, he comments that the profit will be very low if the foreign purchasers are not the end users, while the price will be negotiable if they are the end users. Mr.Yang, from SHS in Shanghai, comments that the products from their company are mainly exported to EU and USA. Most purchasers will accept the increase in price caused by the objective factors as they trust and pay more attention to the quality and brand products in SHE. Secondly, improve the product quality, speed up new product research, launch its own brand in order to expand exports and increase international market share. Mr. Zhu Shujun, the president of Evan Fastener System Shanghai Ltd. thinks that it is the best choice for fastener enterprises to establish their own brands and launch new products by themselves. The enterprises had better manufacture the products according to the customers¡¯ request and design instead of becoming only the processing factories of other enterprises. President of KINFAST Hardware (Shenzhen) Ltd., shows that the philosophy of ¡°choice should be good for products and customers¡± is the main method for the company to avoid the risks. Meanwhile, the factory director tells the reporter that adjusting the industrial structure and manufacturing high added-value products are the only ways for the enterprises to sustain development. Thirdly, Control the material cost The material price still maintains in a high level as the over demand and limited resources. However, experts analyzes that there is a developing rule for every thing- up and down; if enterprises are able to foresee the low point of the material cost, they had better enlarge the storage accordingly instead of making a mess when the cost climbs to the peak. The product price changes according to the material cost, which will put the enterprises into a very negative position and be bad for their development. Fourthly, improve the inside management, control the cost, improve efficiency Dalian Hengping Jinggong Fastener Co., Ltd. exports 50% products to Japan which are mainly two-tooth wood screws. Mr. Zheng Liangyong shows that the decrease in export rebate results in low profit; they have to improve the inside management and try their best to cut down the cost during the producing process in order to achieve more profits. The government has adjusted the export tax refund policy for many times, which leads some medium and small sized enterprises suffer a lot. But he expresses that the government makes this adjustment on the interest of the whole country, so the enterprises should accept the policy for the sake of the whole. He hopes that the Chinese fastener industry will not only expand business scope but also enhance competitiveness. Fifthly, develop more purchasers, choose good purchasers Wuxi Anshida Hardware Co., Ltd. is one of the leading mandred rivet and rivet nut exporter manufacturers in China. It continually introduced advanced production equipment and technology from Taiwan and Italy. The company has passed ISO9001:2000 Quality System Authentication. Mr. Dai Zhizhong, technical manager in Anshida tells us that the profit decreases in despite of the same Sales volume. Thanks to the on time shipment of all the ready products before July, 1st, the company will turn to the high ¨Cprofit orders while reduce the high-risk and small sum orders. Meanwhile, the company will resort to improving the inside management, low cost and high-grade products, launching new products to face the current and future risks. All above measures are for the fastener manufacture-oriented enterprises. So what about the foreign trade company? Mr. Xu, Sales manager in Haiyan East Printing&Dyeing Co., Ltd advises that ¡°many foreign trade companies store their products in the bonded area. In this way, the fee is not expensive and what¡¯s more, it is equal that the products have been exported. Besides, the powerful foreign trade companies who have warehouses aboard can transfer a large number of products to foreign warehouses. The policy of 8% decrease in export rebate rate has been carried out for more than half a month. It is obvious that it makes on sense for the foreign trade companies to transfer the products to bonded area in advance or transfer the products to foreign warehouses. The most direct and workable ways are as following: increase the price for the purchasers or cut down the price offered by the suppliers, only in which can they get more profit. However, Mr. Xu points it out that it is not easy for the foreign trade companies to make it. So it is a hard time for the new foreign trade companies without long-term business partners. Some experts suggest that the foreign trade companies should cultivate the ability of risk foreseeing; gain more long-term and stable partnerships through supplying excellent service and decrease the cost in logistics to increase the profit. Looking to the Future It is known that the current adjustment in export rebate leads the medium and small sized enterprises who are already in a bad situation into a more difficult position. The enterprises focus on the market while the market focuses on the brand, so the enterprises can find out the solution in the market and product brand. Therefore, the most urgent task for the enterprises is to improve the technological content of products and high-added value products. The new export rebate policy make the enterprises have to resort to ¡°high quality, brand¡± business management. Changing from "export opportunities" to the "strategic exports", it is inevitable for the Chinese fastener enterprises to enter into the export times.
By | 2008-03-08 00:00:00
According to a report of investigation, Chinese fastener industry would keep a high rise in demand and rank an important position. Chinese demand for industrial fasteners to rise 9.4% annually through 2010 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, benefitting from increases in manufacturing production and construction activities. Nonthreaded sales will grow over ten percent annually through 2010, stimulated by rapid growth in durable goods, as well as by further technological innovations in nonthreaded 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. www.chinafastener.com
By | 2008-03-08 00:00:00
China's industrial-output growth slowed for a second month after cuts to export incentives. Production rose 17.5 percent in August from a year earlier after gaining 18 percent in July, the National Bureau of Statistics said today. That was less than the 17.9 percent median estimate of 23 economists surveyed by Bloomberg News. The slowdown may do little to ease government concern that the world's fastest-growing major economy risks overheating. Inflation jumped in August to the highest rate in a decade and property and stock prices have surged. ``Industrial production has responded to tightening measures,'' said Paul Tang, chief economist at Bank of East Asia Ltd. in Hong Kong. ``But the economy still risks overheating as inflation accelerates and asset bubbles get bigger.'' The People's Bank of China last week ordered lenders to set aside bigger reserves for the seventh time this year. It has also raised interest rates four times since March. Wang Qian, an economist at JPMorgan Chase & Co. in Hong Kong, expects a 0.27 percentage point increase in the one-year lending rate to 7.29 percent by year's end. Wang also says the proportion of deposits that lenders must set aside as reserves may rise by 0.5 percentage point to 13 percent. China's economy, the world's fourth largest, expanded 11.9 percent in the second quarter from a year earlier, the fastest pace in more than 12 years. Cash From Exports For the first eight months, industrial production rose 18.4 percent from a year earlier. That compares with the 16.6 percent gain for all of 2006. Automobile output climbed 21.7 percent in August, slowing from a 32.7 percent increase in the previous month. Cement production rose 13.3 percent, after an 11.6 percent gain. Output of steel products increased 23.7 percent, close to the previous month's 23.9 percent growth. Export earnings have flooded the economy with cash. China's trade surplus widened 33 percent in August from a year earlier to $24.97 billion. Overseas shipments had their smallest gain in five months in August after the government reduced export tax rebates in July. Growth in lead production will slow this year because of tax changes and raw-material shortages, the China Nonferrous Metals Industry Association said this week. China's consumer prices rose 6.5 percent in August from a year earlier, the biggest increase since December 1996, on food costs. The key CSI 300 Index of stocks has almost quadrupled in the past year and housing prices in 70 Chinese cities jumped 8.2 percent last month from a year earlier. Tomorrow's urban fixed-asset investment data will be the nation's final major economic indicator this month. The median estimate of economists surveyed by Bloomberg News is for a 26.5 percent increase in factory and property spending through August from a year earlier. That would be close to the 26.6 percent pace of the first seven months.
By | 2008-03-08 00:00:00
It is estimated that the macro economy of China will be on fast track in the coming 3 to 5 years. During that course, the pace of growth will keep going. Experience teaches us that when evaluating the health conditions of fastener industry, we should not only focus on output, speed or profits, but also judge whether it follows the market law as well. The boom in previous years of China fastener market created miracles one after another. However, the overspeed development can but appear for a short period. It could be even described as the elevated development compared with the past few years. The sustainable development of an industry does not depend on our zeal and hope, as we still face lots of difficulties; we even come across crisis. As the experts said, the explosive growth of China fastener industry happened under a specific period and conditions. When the market turns to be rational, China fastener industry will keep stable development for a longer period. It is estimated that the macro economy of China will be on fast track in the coming 3 to 5 years. During that course, the pace of growth will keep going. Experience teaches us that when evaluating the health conditions of fastener industry, we should not only focus on output, speed or profits, but also judge whether it follows the market law as well. China fastener industry has taken up more and more percentage in the international market share. It is anticipated that the world produces as many as 14 million tons of fasteners, 30% of which are from China mainland. Along with the trends of worldwide industrial division and manufacturing transition, the output of China fasteners will keep growing. However, great risks are always hidden behind the high-speed growth. Therefore, when realizing the market rules, we should be in a peaceful mind. Since 2006, multinational fastener enterprises have entered Chinese market one after another. On the one hand, statistics show that the number of such companies reaches 250, which brings in opportunities and challenges to China fastener industry. On the other hand, foreign companies only have eyes on the low cost of China manufacturing, but the price advantage of enterprises seems to be weaker and weaker. In the past few years, many fastener enterprises regarded bargain as the tool to expand fastener market. Unfortunately, price reduction had lost its former power. The increase in price of raw materials such as steel, fuel, etc causes the sharp growth of fastener production cost. Fastener manufacturers are up against the cost pressure. China fastener industry is stepping into the complete shuffle period. Though good as the opportunities are, the obstacles in system of China fastener industry seem to be incompatible with them. Although we have four production bases??Wenzhou, Ningbo, Haiyan and Yongnian, they are scattered and have few large-scale enterprises or influential groups. Moreover, there is seldom cooperation among enterprises. All of these are caused by management system, finance system, examination and approval system, etc. Fundamentally speaking, the production mode is the result of the transition from planned economy to social market economy. Fastener enterprises should notice these conditions in the fierce competition??high quality, low cost, short validity, variety and differentiation. At present, we have no fastener industrial groups in strict sense. Although we have four production bases, it takes time to reach the scale in real sense. Industrial group is the outcome of being strong and big that covers the achievement of scale benefit, lean production, module technology. It is an inevitable trend for our fastener industry.
By | 2008-03-03 00:00:00
2006 is the first year of the Eleventh Five-Year Plan. Driven by the constant rapid growth of national economy, China fastener industry kept an increase rate of over 30%. For one thing, thanks to the fast development pace of the industries such as machine industry, automotive industry, city infrastructure construction and real estate industry; for another thing, due to the good climate of global economy, especially the economic recovery of the developed countries such as U.S., Europe and Japan, it was obvious that the growing speed was quickened, which therefore generated the prosperity of the global fastener market. China fastener saw a certain gain in both import and export in 2006. It was the outcome of the global economic development, adjustment of the industrial policy in developed countries, and the transfer of manufacturing. General speaking, the fasteners we exported were mainly low-end or mid-end products. As a result, the average price was only 1260 USD per ton, which reflected the overall low price level. While the high strength fasteners imported from foreign countries, the average price of which reached 9000 USD per ton, seven times more than our export average price. It is apparent that the product structure of our fastener industry that only depending on producing and exporting low and mid-end China fastener saw a certain gain in both import and export in 2006. It was the outcome of the global economic development, adjustment of the industrial policy in developed countries, and the transfer of manufacturing. General speaking, the fasteners we exported were mainly low-end or mid-end products. As a result, the average price was only 1260 USD per ton, which reflected the overall low price level. While the high strength fasteners imported from foreign countries, the average price of which reached 9000 USD per ton, seven times more than our export average price. It is apparent that the product structure of our fastener industry that only depending on producing and exporting low and mid-end fasteners was not reasonable; on the other hand, there was great demand of high strength, high precision and special fasteners in the export market applied in the areas of automobiles, IT industry and key projects. On the whole, we were optimistic about the fastener industry, but quite a few subjects remained to be solved. In 2006, that the price of raw materials jumped and the price of tool and die steel rose caused the sharp increase in price of thread rolling boards, thread rollers and cold heading dies. Moreover, the price of oil stayed high, which caused the sharp increase in production cost of fasteners. The profit margins of fasteners deteriorated day by day. In order to increase benefits, some enterprises had to transfer the increased material costs to the product price. In order to be understood by customers, they tried to communicate with them. In fact, however, they could not get understood by their customers. Instead, they were asked to reduce the price monthly or yearly, which troubled them a lot. China fastener industry came across the ever biggest trade friction in 2006. Along with the complete development of China economy and the rapid growth of foreign economy, there is no surprise for the appearance of trade friction. The key is to face up to this trade friction, to keep improving the competitive strength. Fastener is the basic of various industries. The development of global economy could not last without fasteners. Although competition exists, fastener processing center locates in Asia and China fasteners still play a leading role in Asian market. That's why the opportunities and challenges co-exist. Nowadays, low-end fasteners are overproduced, especially fasteners less than property class of 8.8. The pace of product adjustment should be quickened. The bank should properly tighten the credit loan placement aiming at the enterprises with low-end production and poor technological innovation capability. China produces the most fasteners in the world. Fasteners of high strength and high precision, such as automotive fasteners, are growing up, which could bring in a prosperous market. Meanwhile, they are the key point of the product structural adjustment in the whole industry. High strength fasteners have become a major subject of the leap-forward development of China fasteners. Along with the recovery of global economy and the sustainable development of China economy, it is certain that China fasteners would keep improving. In 2007, we should be sober-minded to notice that China fastener industry is a rising as a developing industry. All fastener people should be realistic and ready for the future. The product structural adjustment involving the whole industry should be highlighted. In order to completely improve the technological levels of China fastener industry, to quicken the product pattern adjustment in the export market, and to accelerate the transfer of fastener increase mode, the enterprises should try their best to produce high strength fasteners (property class is equal to 8 or more than 8.8), standard fasteners, assemblies, and mini standard fasteners. Moreover, they should highly promote environment-friendly surface treatment such as trivalent chromium plating and non-chromate dacromet. We are full of expectation and confident for that.
By | 2008-03-03 00:00:00
China and the Association of Southeast Asian Nations (ASEAN) became each other's fourth-largest trading partners last year, the China-ASEAN Business Council said here on Friday. Total bilateral trade surged 25.9 percent year-on-year to 202.5billion U.S. dollars, reaching that level three years ahead of the mutual target. Arin Jira, the secretary-general of ASEAN Chambers of Commerce and Industry, said that they expected further increases and hoped China would lift duties on some export goods, such as semi-processed steel products. The current export duties for such goods, including slabs, ranged from 5 percent to 25 percent. Arin said he hoped they could be lifted before 2015. Yang Zunqing, secretary-general of the China Iron & Steel Association, said that soaring ore prices and government efforts to reduce steel exports resulted in the declining export volume. He said that China could provide equipment and technology to help ASEAN countries process their own raw materials, such as gas and ore, which were abundant in these countries. Arin also called for uniform export quality standards. "I wish we could sit down and talk about specific details soon," he said. ASEAN, which wants to establish a single market and production base, has 10 members, including Thailand, the Philippines and Singapore.
By | 2008-03-01 00:00:00
The high and middle class numerical control system, which is researched and developed by China's scientists and engineers, is fixed into 30 numerical control machine tools of Shenyang Machine Tools Group in batches for the first time. The 30 machine tools includes 6 broad categories and 11 type models. These numerical control machine tools are paid much attention to by many merchants, clients and common people in the sixth GIMEE held in Shenyang. Mr.Dong linyun, the vice chairman of Shenyang Machine Tools Group, said that the program "Domestic NC machine tools using domestic NC system demonstration project" has passed the approval test of National Development and Innovation Committee. Machine tool is the mother machine of manufacturing, while numerical control machine is the "heart" of NC machine tool. Nowadays, the NC system used by China¡¯s high and middle class NC machine tools is basically controlled by foreign transnational corporations. 83% of Chinese universal type NC system market was taken up by foreign companies, while the high-grade NC machine tools were just sold by over 10 sets, only taking up 0.5% of the market. In order to achieve the breakthrough in domestic high and middle NC system industrialization and volume producing, promoted by national and Liaoning related departments in April, "Domestic NC machine tools using domestic NC system demonstration project" realized the breakthrough in real of high and middle NC system localization. www.chinafastener.com
By | 2008-02-28 00:00:00
Head of JIAXING ASSOCIATION FASTENERS IMP. & EXP. COMPANIES expressed in Brussels on Feb, 25th that EU anti-dumping investigation on China fasteners is lacking of evidence, which will also harm the interests of European consumers. The Association Secretary-General Tu Zhiqing stated to Chinese medium in Brussels that the antidumping investigation is not proven, since Chinese fastener products and most EU fastener products lacks of homogeneity and have different target customers and customer group. There is not direct competition between Chinese products and EU products, so it is lack of the main factor for industrial damage. In addition, with increasing export costs and the rising prices of raw materials caused by the continued appreciation of RMB, the export price of fastener in mainland China has increased by 50%, which leads the antidumping investigation undergo major changes. Tu Zhiqing expresses that it is unfair for European Commission to perform antidumping investigation on fasteners manufactured and exported in mainland China unilaterally. It is a kind of trade protection measures, which will also distort the healthy trade relationship between EU and China. He said that taking antidumping measures does not only harm Chinese enterprises, lead more challenges for EU importers and its employment, but also increase production cost of EU downstream industries, which will ultimately increase the burden on EU customers.
