Raw material prices affect the development of the fastener industry

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.

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.

The production capacity and raw material prices have always been a major factor affecting the development of the fastener industry. It is also a topic that will never be outdated, and often said constantly. ”

It should be said that at present, China's fastener industry is in a period of great development. The overall market demand is continuously growing, and the corresponding production capacity also needs to increase. However, how to grasp the increase in timing and “degree” requires superb investment skills and markets. The ability to grasp.

The production capacity largely determines the relationship between supply and demand, and the raw material prices affect the purchaser’s determination to purchase and both directly influence the direction of the fastener market.

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.

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.

In the past, we always talked about how fierce competition in the fastener market was. Everyone was competing with each other to compete for prices, compete for products, compete for technology, compete for quality, and strive for after-sales services. Now that this kind of competition has reached the level of close combat, there will be situations where you will not be able to talk about prices. It is to fight prices. That is, in each specific area, there will be more and more direct face-to-face competition for fastener products, and from a technical point of view, from the standpoint of product quality, it is highly targeted in terms of price. of.