Fastener Prices Rising Based on Jump in Cost of China’s Steel
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Fastener Prices Rising Based on Jump in Cost of China’s Steel
Steel prices in China hit a 25-year low in late 2015, but thus far in 2016 prices have jumped and the increases are beginning to show in fastener prices.
Multiple executives are reporting fastener prices have begun rising, but at a slower rate than China’s steel.
• Jun Xu of Brighton-Best International finds fastener costs have risen in from 10% to 30% – below the 50% to 60% that steel has jumped thus far this year.
• Tom Bigott, purchasing manager for XL Screw, explained that the steel price increases can be attributed to the China government previously “financially supporting steel mills to maintain production during a prolonged period of decreasing international and domestic demand,” Bigott said.
• If steel prices stay at “current levels or higher, fastener costs will increase,” Mike Wrenn of Lindstrom warned.
• In contrast to the prices of steel in China, the stainless fastener market prices are lower due to the price of nickel being down, Bruce Wheeler of Star Stainless noted. Once the world’s supply of nickel comes in balance with anticipated demand then prices will rise once again, Wheeler advised.
Xu concluded that Brighton-Best expects “this cost pressure to have upward pressure on pricing in the market.”
Globally, steel wire rod prices in the last year have ranged from $305 to $410, with an average of $350.45.
For more on the 2016 steel market in China, FIN Subscribers may click here.
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