Global Fastener News

China Fastener Imports Grow 12%

Jason Sandefur

China’s fastener industry kept growing in 2007 due to the economic development of China and overseas countries, according to a special report compiled by Fastener World magazine.

“Although China was under the negative impact of macroeconomic adjustment and the tightened monetary policy, mechanical industry increased over 30%, automobile industry increased 25%, engineering machinery industry increased over 20%, construction maintenance & repair industry increased 25%, and electronic & electrical industry increased over 20%,” Fastener World reports.

In 2007 Chinese fastener output rose 14% to 5.25 million tons, while revenue from fasteners grew 14.2% to RMB$44 billion. Fastener exports jumped 24% to 2.57 million tons, with the value soaring nearly 38% to US$3.25 billion, according to Fastener World. The average unit price increased 11% to US$1,264.98 per ton.

Meanwhile, China imported 170,900 tons of fasteners, up 12% from the previous year. The total import value reportedly grew 25% to US$1.85 billion.

But 2008 has been a different story for the fastener industry in China, Fastener World reports.

The global credit crisis caused raw material prices to “substantially increase,” while energy and labor costs rose and the threat of anti-dumping duties from the European Union put pressure on the industry.

“During the first-half year of 2008, the Chinese fastener industry faced slow development, and fastener exports decreased 15 20%.” This trimmed margins, pushing a “great number of small- and medium-sized business to face production stoppages and bankruptcy.”

These conditions have forced the Chinese fastener industry to accelerate re-capitalization, adopt new business strategies and conduct a “structural readjustment of products in order to assist the industry in stabilizing development.” �2008 FastenerNews.com