Fastener industry market slowed down

For the fastener industry, the good situation in the first half of the year has already come to an end.

Since September, new orders from relevant companies, especially export orders, have started to decline, and some have even dropped by two-thirds.

Has the fastener industry been cold in winter? Can we achieve stable development this year?

During the 24th National Fastener Economic and Trade Fair held recently, Feng Jinbiao, Chairman of the Fasteners Branch of China General Motors Industrial Association, accepted an exclusive interview with the reporter.

“Compared with the situation that is booming in the first half of the year, the industry will face severe challenges and challenges in the second half of the year.” He cautioned that companies must be prepared for this.

In the first half of the year, the added value of the stable development has been raised. Since the beginning of this year, a number of mountains, including labor shortages, high labor costs, energy shortages, large fluctuations in raw material prices, and inflation, have become the head of the fastener industry.

However, in the first half of this year, this industry still maintained a relatively stable development.

"Do not look at fasteners is a small product, but its wide range of applications, the market demand is large." Feng Jinzhao explained. Moreover, on the whole, the central government still adopts a proactive fiscal policy. From January to June, GPT still maintained a rapid growth of 9.5%. While the world economy is unstable, it still has a certain recovery.

“This has provided certain opportunities for the development of the domestic and export markets of our fasteners. The industry situation in the first half of the year is still booming.” He listed several data for the reporter.

In the first half of 2011, the total output of fasteners in China increased by 6.9% year-on-year, total sales increased by 7.02% year-on-year, and export fasteners increased by 21.57% year-on-year, of which export value increased by 42.6% year-on-year, and export average unit price reached US$1,721 / Ton, a year-on-year increase of 16.52%. "This is a good sign, which means that the added value of our current export products is increasing."

At the same time, China's imported fasteners increased by 4.62% year-on-year in the first half of the year, and the import amount increased by 11.12% year-on-year. The average import unit price was 10,618 USD/ton.

"The slight increase in import growth was mainly due to the fact that since last year, we imposed a tariff of up to 26% on fasteners imported from the EU and curbed the import of high-strength fasteners from the EU," explained Feng Jinjun.

In the second half of the year, many challenges are under pressure. "But we are facing many pressures in the second half of the year." Feng Jinzhao reminded.

First, inflationary pressures have further increased and GPT growth has slowed down, which has had a negative impact on the real economy. "As far as I know, many fastener companies have some panic, because orders in the hands are decreasing, especially exports are more difficult." Feng Jinzhao told reporters that several companies account for a large proportion of export business, orders are In a large number of drops, the pressure is great.

Second, the growth rate of key industries such as automobiles, advanced manufacturing, high-speed railways, and electronic appliances fell sharply year-on-year, bringing the matching fastener industry to a significant impact.

An insider of a Shanghai company who provided tooling equipment for fastener manufacturing told the reporter that its customers are mainly targeting high-speed rail, nuclear power, wind power and other fields. Affected by the downturn in the downstream market, the company’s orders have fallen since the third quarter. Two thirds.

Third, the tightening of monetary policy, the difficulty of making loans to small and medium-sized enterprises, and the scarcity of funds have caused the company’s production and operations to be in a predicament. In particular, some fastener companies have failed to collect their loans in time due to the breakage of the capital chain, or some of the investments are not clear enough, causing the fronts to pull too long and are in trouble.

Fourth, the sluggish economy in Europe and the United States has caused trade frictions to rise. Coupled with changes in exchange rates and export policies, it has brought new pressure on companies. The growth rate of industrial exports has been declining month by month, and by the end of September, it has only increased by 19% year-on-year.

"I estimate there will be changes in the exchange rate. Companies should make preparations early and plan early." Feng Jinchen reminded.

Fifth, according to the report of the Comprehensive Economic Leading Index released recently by the International Organization for Economic Cooperation and Development, many major global economies continued to decline in September this year, and the index for the OECD region in September was 100.4 points, down by 0.4 points from the previous month. It has fallen month-on-month for six months in a row, indicating that economic growth has continued to slow. It indicates that the growth of these economies will continue to slow down, and the decline will increase significantly.

"This year's situation is very different from that in 2008. It was difficult in foreign countries in 2008. China's government has taken a series of measures and the pressure on the company is not great. Now it is a slowdown of the global economy including China, and internal and external difficulties." It is emphasized that the entire industry is facing severe challenges and challenges in the second half of this year, and enterprises must have sufficient awareness and psychological preparation.

In an interview with an output of 6.5 million tons in 2011, he mentioned several countermeasures.

In his view, enterprises must first of all be encouraged and continue to develop, and in the predicament, increase restructuring, acquisitions, and strengthen adjustments to transform specialized, intensive, and production-oriented enterprises.

“The current well-adjusted business is still relatively easy.” For example, he said that Shanghai Shenguang High-strength Bolt Co., Ltd. has increased investment, improved its processing capacity and manufacturing level, increased market orders, and continued to invest in R&D. The cost has led to sustainable development. At present, it has become a leader in the industry. There are also companies that adjust their business strategies. They rely on the development of precision nuts and caps to develop eight, ten, twelve, or special-shaped parts and increase the number of products. Value; There are also companies that provide specialized maintenance services for large companies.

“The per-capita labor rate has been raised to more than 1 million yuan, the total cost of materials has fallen below 55%, the level of manufacturing has been greatly improved, and the quality of products can be effectively controlled—this is the path we have to take. Who is going faster? If we go earlier, there will be a future for development," said Feng Jinjun.

Secondly, we must speed up the structural adjustment of our products and firmly rely on industries such as automobiles, new energy, high-speed railways, urban transportation, advanced manufacturing, aerospace, electronics and electronics, IT and construction to vigorously develop high-performance, high-intensity, high-value-added products. .

In particular, he pointed out that we must focus on the development of combination screws and assemblies, stainless steel fasteners, IT industry precision screws, self-locking fasteners, titanium alloys, aluminum alloy fasteners, automotive fasteners and various surface treatments, Chemical coating fasteners, and constantly improve product technology content and standards.

Third, we must give full play to the advantages of independent innovation of enterprises, vigorously develop information technology and high-tech applications, and increase the level of manufacturing and labor productivity.

“Now the labor costs are getting higher and higher, recruitment is difficult and the cost is high, and the mobility of talents is large. The industry should increase the technical reforms, increase the level of manufacturing and processing, and develop automation and intelligence.”

Feng Jinjun appealed that there is a process in which companies should plan to consider from now on, instead of investing funds in the repeated production of middle- and low-grade products, they should use funds for innovation and technical innovation, improve the level of enterprise equipment intelligence, and upgrade online. Test level. “We must not be complacent, Cambodia, Vietnam, India, and Malaysia are all developing the fastener industry, and they will form a strong competition for us.”

At the same time, we should base ourselves on the domestic market, promote dislocation competition, standardize the market order, and oppose and stop low-price dumping. We must constantly adjust product prices in market practice to adapt the price of fastener products to production costs, adapt to the international market, and adapt to the brand and quality.

In addition, we must speed up the withdrawal of funds, strictly control the scale of loans and investments, and pay more attention to controlling cash flow. We must pay attention to changes in the European and American markets, actively respond to various trade protection measures, and stabilize the export market.

“Although we have won the dispute with the EU on fastener trade, the company has not received any benefits. We must continue to play until the EU withdraws its wrong decision!” Feng Jindi said that the entire world economy is slowing down next year. The export situation is even more severe. In this regard, companies must have a clear understanding of the export area adjustment, and explore more potential markets such as South America, North America, Asia, and Southeast Asia.

According to his forecast, the fastener production in China will reach around 6.5 million tons in 2011.

After the first low in 2012, Yang expects to re-innovate high. In 2012, Feng Jinxi analyzed that the next year is the critical year for the 12th Five-Year Plan, and it is also the year when the 18th Party Congress will be successfully held. "Promoting growth, injecting people's livelihood, and promoting employment" will continue to be the main theme of development. The development of the fastener industry will continue to present the situation of "first low, then high, and then new high."

From the fourth quarter of this year to the first half of next year, the development speed of the fastener industry will slow down due to the impact of the objective environment. However, starting from the third quarter of next year, as the policy is in place, the 18th National Congress will launch a series of developments. Policies, etc., can promote the further development of the industry.

He also stressed that we must adhere to innovation and adjustment and transformation, and we must continue to closely rely on key industries such as automobiles, new energy, aerospace, shipbuilding, urban transportation, IT, electronic appliances, and construction to accelerate the optimization and upgrading of fastener products. Promote the healthy and steady development of the entire industry. It is estimated that the total output of fasteners will reach about 6.8 million tons in 2012.