Basic conditions of fastener industry market development

I. Analysis of market status The triple hit in 2009 The reason why Yongnian standard parts industry's export value in 2009 decreased by 47.77% year-on-year, including the shrinking of external demand caused by the financial crisis and frequent international trade frictions that led to the export companies being paralyzed. There is also the impact of unpredictable steel prices on business operations.

Wenzhou Fasteners Import and Export Association, said relevant persons, the financial crisis directly led to the downstream industries of fasteners cut production and production. Sharply reduced external demand led to insufficient orders for fastener manufacturers, oversupply of products, and a large inventory of inventory. In order to win over foreign customers, some companies inflated the competitors by disparate sales prices, resulting in a continuous decline in export unit prices.

In 2009, the total export volume of steel fastener products of the city was 467,802 tons, a year-on-year decrease of 35.88%, a decrease of 7 percentage points from the first three quarters of 2009; the average export price was 1,091 USD/ton, a year-on-year decrease of 16.33%.

In 2009 Yongnian standard parts export companies suffered a total of 4 cases of trade remedy investigations from the United States, Europe and other countries and regions: in February, Mexico investigated the anti-dumping measures against my nuts; in April, Turkey evaluated the customs of the fasteners in China; Russia carried out investigations on safeguard measures for certain fasteners. In October, the United States conducted anti-dumping and anti-subsidy merger investigations on fasteners.

The ensuing international trade friction once caused Yongzhou standard parts export companies to get into trouble. In 2009, the fastener products exported to the United States stood at US$126.27 million, a year-on-year decrease of 45.29%, and exported to the EU at US$99.91 million, a year-on-year decrease of 69.99%. The exports to the United States and Europe accounted for 44.12% of the total fastener exports of the city, accounting for 2008. Declined by 13%.

In addition, as the main raw material for fasteners, the rise and fall of the price of steel is not always affecting the nerves of fastener companies. In 2009, domestic steel prices repeatedly oscillated, showing a "W" trend overall.

Specifically, domestic steel prices fell from the depth of January-April 2009, and bottomed out in May. They reached the highest point of the year in August, and fell again and fell for more than 10 weeks. From 11 The end of the month began to stabilise, and its uncertainty led to the vulnerability of the fastener industry in the industry chain.

2010 is expected to step out of the difficulties mentioned in 2010, Yongnian standard parts import and export business association is not pessimistic for the following reasons:

First, the financial crisis has receded and policy effects have begun to show. The state promulgated a 4 trillion yuan economic stimulus package and supporting measures in a timely manner, and focused government investment on infrastructure construction, such as railways, highways, and airport construction. This has brought a turning point for the fastener industry to expand the domestic trade market.

At the same time, the state implemented a proactive fiscal policy and a moderately loose monetary policy. The scale of funds used to support credit guarantee business for SMEs doubled exponentially. The People’s Bank of China, together with relevant agencies, guided and encouraged the banking financial institutions to increase the The strength of credit support, etc., all eased the problem of financing for fasteners' SMEs.

Secondly, the Yongnian standard parts industry has doubled its confidence in dealing with international trade frictions. According to reports, fastener companies including Jiaxing fastener companies responded positively to the United States’ victory over the “double counter” investigation of carbon steel fasteners, becoming the only one that has been successful in the fastener industry in China. A case.

In December 2009, the Ministry of Commerce announced the preliminary decision on the temporary anti-dumping measures imposed on imports of EU carbon steel fasteners. In November of the same year, Mexico postponed the hearing of the anti-dumping case against carbon steel nuts, which made fastener products The ink exports have been relieved.

In addition, the export tax rebate rate is expected to increase. In view of the fact that the state has repeatedly raised the export tax rebate rate and the fastener products are not used, the association submitted a “proposal on raising the export tax rebate rate for fasteners” at the “Industrial Association Chamber of Commerce Chamber of Commerce solicitation proposals symposium” held by Jiaxing City Federation of Industry and Commerce. The clues promptly reflected the industry's appeal. According to the association, the clues of the proposal have been submitted to the National Committee of the Chinese People's Political Consultative Conference (CPPCC). The relevant government departments will carefully consider the request of fastener companies to increase the export tax rebate rate for fastener products.

It can't be denied that trade friction and financial crisis have brought "painful pains" while also greatly enhancing the consciousness of the development of fastener companies' science. Facts have proved that in response to trade protectionism, fastener companies should be diametrically opposed to each other, establish a broad united front, and do a good job of early warning; change export growth patterns and change low-price competition strategies. According to the association, fastener companies should seek opportunities in crisis, autonomously embark on the road to transformation, adjust product structure in a timely manner, enhance scientific and technological innovation, balance the ratio of internal and external sales, and conduct internal and external repairs to effectively improve the overall strength of the company.

China's fastener industry can be described as disaster-prone. A small product has triggered five cases. From the EU's anti-dumping investigation on my fasteners, to the Ministry of Commerce of the People's Republic of China for anti-dumping arbitration on EU fasteners, China launched the WTO dispute resolution expert group hearing procedure, went to the EU to appeal, and then to the EU to launch anti-circumvention investigation fasteners Screws and nuts, which are mechanical basic parts, are hailed as "Industrial Rice" in the industry. China's fastener production is the first in the world, and half of exports have historically been the hardest-hit areas for foreign trade remedy measures.

On December 3, 2008, the European Commission ruled that anti-dumping duties of 63% to 87% should be levied on Chinese carbon steel fasteners in the next five years. Affected by this, hundreds of fastener companies with close contacts with the European Union have been hit and challenged. "One third of the companies have stopped production and one third of the companies are in semi-discontinued state."

The deputy secretary-general of the Yongnian Standard Parts Import and Export Enterprise Association told this reporter that from January to October 2010, the investigated products (fasteners) exported by Jiaxing to the European Union were US$ 30.767 million, which was 104.281 million yuan from January to October 2008. The U.S. dollar decreased by 73.514 million U.S. dollars. Moreover, these two figures also include some products that have not been investigated. It can be said that Jiaxing’s exports of fasteners to the EU have basically disappeared.

On October 12, 2009, the Chinese government filed a request for the establishment of an expert group to officially launch the trial procedure of the WTO dispute resolution panel. After one year of trial, on December 3, 2010, the WTO expert group issued a report clearly stipulating that the anti-dumping measures taken by the EU against China's carbon steel fasteners violated the WTO rules. The expert group also considered that the EU's "Anti-dumping Basic Regulations" related The "separate tax rate" requirement does not comply with the WTO rules.

This is the first lawsuit between China and the EU under the WTO framework. This is only a temporary result. It is not the 'victory' that some media say. It must be analyzed objectively.

Recently, the excess capacity of fasteners and the soaring of raw materials have fallen on the head of the fastener industry. What everyone says is mainly refers to the limited development of ordinary standard parts (less than 8.8 fasteners). Looking back at the history of the fastener industry, we can find a regular phenomenon, that is, whenever there is a strong sales in the market, product saturation will inevitably follow, followed by macro-control and compression, followed by a short supply, and manufacturers will again increase their capacity. As a result, the product is once again saturated, so that the fastener industry has come this way in the past 20 years.

It is not difficult to see that different companies have different situations, and the current capacity of the products that are on the road is still insufficient. However, if the products are not accepted, the production capacity does indeed show an excess. Within the same company, there are products in short supply, and there are also poor sales of products. Therefore, the issue of fastener production capacity cannot be generalized. In general, overcapacity or lack of surplus has been biased. The survival of the fittest and innovation are the signs of the healthy development of the industry.

With the overcapacity and product saturation, cold-boring steel wire rods continue to rise. In fact, the trend of raw materials is the impact of the international environment. Since 2004, the global iron ore prices have risen steadily. In 2005, the price of iron ore soared by 71.5%. This year, it is expected that it will still rise by 10%. Nowadays, the commonly used cold-rolled steel swrch35k ​​has risen to 3,900-4,400 tons, and the carbon steel 45# has also risen to 3,400-3,800 tons, 500-800 tons more than the previous month.

Analysis of the reasons for the recent steady increase in the price of raw materials mainly includes the following: First, control of the production capacity of the iron and steel industry tends to ease the relationship between supply and demand, the state strengthens the macro-control of the 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.

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.

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 or not its products can obtain 'identity cards' originating in Malaysia depends on whether the value-added in the Malaysian 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 are indeed re-export trades, we also hope to resolve them through consultations. Some companies may not understand the local laws and trade rules deeply.

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.

The export of fasteners in China this year was about 3.2 billion U.S. dollars, and in 2008 it was more than 4 billion U.S. dollars. The export situation next year will be severe. The increase in exports in the second half of this year is due to the fact that after the financial crisis, foreign replenishment of stocks will enter the normal stage next year and the situation will not be much better than this year.

II. Analysis of Market Size During the five years between 2004 and 2007, China’s economy was in a rapid phase. The demand for metal products increased in various sectors of the domestic industrial sector, including the construction industry, infrastructure, and infrastructure construction, and thus the fasteners were driven. The rapid development of the market.

According to statistics from the National Statistics Commission and the Customs Department, the fastener market in 2003 was 75,100 tons, of which total production of fasteners was 69,000 tons; total imports were 20,500 tons, accounting for 27.3% of the total market; exports The total amount is 14,400 tons.

In 2004, the fastener market scale was 94,400 tons, of which the total production of fasteners was 78,000 tons; the total import volume was 23,800 tons, accounting for 25.2% of the total market; the total export volume was 0.74 million tons.

In 2005, the fastener market scale was 114,700 tons, of which total production of fasteners was 90,000 tons; total imports were 30,500 tons, which accounted for 26.6% of the total market; and total exports were 5,800 tons.

In 2006, the size of the fastener market was 128,900 tons, of which total production of fasteners was 105,000 tons; total imports were 26,500 tons, accounting for 20.6% of the total market; and total exports were 0.26 million tons.

In 2007, the size of the fastener market was 164,400 tons, of which total production of fasteners was 125,000 tons; total imports were 45,700 tons, which accounted for 27.8% of the total market; and total exports were 6,300 tons.

III. Analysis of Market Characteristics The recent growth rate of fasteners demand in China is 5%-10%. The demand for fasteners in 2008 was 3.13 million tons, an increase of 9.5% year-on-year, of which the automobile industry is the largest user, followed by the maintenance of the industrial market and Construction industry, then electronics industry. Recently, in order to stimulate domestic demand, the state has introduced many 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 to be equipped. Manufacturing, which 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.

However, with such cruel competition today, it is indeed not an easy task for a foreign trade-oriented company to switch to the domestic market. This difficulty is not only caused by its 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.

IV. Development status of market technology The National Development and Reform Commission has determined that in the formulation of the “Twelfth Five-Year Plan”, the preparation of emerging strategic industries will be the focus. These industries include new energy, energy conservation and environmental protection, electric vehicles, new materials, new medicines, etc. In the future, efforts should be made to promote economic restructuring and the development of strategic emerging industries, increase the use of new technologies to transform and upgrade traditional industries, increase investment in R&D, increase independent innovation, and accelerate the development of strategic emerging industries. For this reason, the old development model of the fastener industry is not sustainable, and the over-reliance on external demand and the development model of automobiles and real estate is increasingly difficult to sustain.

Since the implementation of the package of the steady and rapid economic development of the Party Central Committee and the State Council this year, the policy effect has taken initial effect. The industrial growth rate has steadily increased and the difficulties in the production and operation of fastener enterprises have eased. However, from the current development status of the fastener industry, since 2009, a total of 19 countries (regions) have initiated 102 trade remedy investigations against China, involving a total amount of 11.68 billion yuan; trade remedy surveys involving more than 100 million yuan in value have included 17 from. Nearly 90% of China’s trade remedy investigations were initiated by G20 members. From January to August, G20 members launched 73 trade remedy investigations against China, an increase of 27% year-on-year, accounting for 90% of the total number of cases of China's trade remedy investigations in the same period. The amount involved amounted to approximately US$ 100.53 billion, accounting for China’s trade remedy investigation cases in the same period. 99.9% of the amount involved.

The operating environment of the fastener industry at present and in the coming period will be very severe, especially for the export of products and the operating performance of the enterprises. The various price-based competitions among various enterprises in the industry are also necessary. Will be unprecedented fierce.

In the “Adjustment and Revitalization Plan for the Equipment Manufacturing Industry”, the country has for the first time listed basic components including high-strength fasteners as an opportunity to enhance the manufacturing level of the four major supporting products. Nowadays, the fastener industry in China is currently undergoing transformation. From the middle to low-end products to the key process of high-end products, not only must adhere to the independent innovation road of resource-saving, environment-friendly, circular economy, constantly changing the economic growth mode of the fastener industry, but also need to introduce With advanced international technologies and equipment, various testing instruments have been added. The level of technology, technology, and equipment have been continuously improved, and the scientific and technological content of labor-intensive products has been continuously improved. In particular, while the country vigorously advocates energy-saving and emission-reduction and the development of a low-carbon economy, it is also inseparable from the improvement in the quality and grade of fastener products as a basic mechanical part.

Key fastener companies should become pioneers of technological innovation. Through the establishment of its own research and development and technological innovation institutions, the technology development system, which is a key link of technological innovation, will be brought into play to fundamentally improve the company’s own technological innovation capabilities. In order to solve the various limitations of its own resources, we should rationally allocate resources for innovation from the three aspects of human resources, material resources and material resources.

First of all, a high-quality scientific and technological team is the fundamental guarantee for the success of innovation in fastener companies. Recruiting and introducing various professional talents can enable the normal high-speed operation of research and development, production and sales of enterprises and their products, and better use of scientific and technological talents. The vitality, synergy and team spirit create higher economic benefits.

Secondly, continuous industrial upgrading and product replacement, and continuous adoption of domestic and foreign advanced equipment and technologies, continuous research and development of various types of materials required for fasteners, rational self-financing, and limited funds for new product development To increase investment in technology, skills, key equipment, etc. that are related to the cultivation of core competencies, we must pay attention to the timing of capital investment in order to bring about the quickest and best use of funds.

Thirdly, key fastener companies should strengthen technological innovation in production, raise the level of production technology, open a “bottleneck” that restricts the ability of enterprises to innovate products and the technological level of enterprises, apply new technologies in time to existing equipment in enterprises, and extend their technology. Lifetime, improve its performance, thus ensuring that the company's production is based on advanced material technology.