Fastener industry is dependent on raw materials industry, the rise of raw materials will naturally increase the cost of fastener production. In the current situation, the fastener enterprises should adjust the product structure in time, control the scale of investment and reduce non productive expenses, which is undoubtedly positive.
Not difficult to see, different enterprises, different circumstances, forging equipment products to the market, the current capacity is still inadequate, and the product is not accepted enterprises, production capacity is indeed excessive. Within the same enterprise, there are products in short supply, but also poor product sales.
Therefore, the production capacity of fasteners can not be generalized, generally speaking, overcapacity is still left, biased, survival of the fittest, and bring forth the new, is a sign of healthy development of the industry.
In recent years, fastener production overcapacity and raw material inflation, while falling in the fastener industry. Capacity is mainly referred to as standard parts (less than 8.8 fasteners) and restricted development. Review the history of the fastener industry, we can find a regular phenomenon, is when market popular, followed by the inevitable product, then is macroeconomicregulation and compression, followed by another round of demand, manufacturers again on production capacity, so the products again saturated, so the cycle, the fastener industry in recent 20 years here is so over.
With excess capacity, product saturation is accompanied by cold heading steel continued to rise, in fact the raw materials to influence, the international environment since 2004, the global iron ore price rise step by step, in 2005, iron ore prices soared 71.5%, this year is expected to rise 10%, now often used in cold heading steel swrch35k rose to 3900~4400 yuan per ton carbon steel, 45# also rose to 3400~3800 yuan per ton, up 500~800 yuan per ton than last month.
The reasons for the steady increase of raw material prices are as follows: first of all, to control the production capacity of the iron and steel industry, to ease the supply-demand relationship, to strengthen the macro-control of the steel industry, and to promote the development of the steel market. Secondly, steel imports fell and exports increase, is conducive to the stabilization of the price. Once again, market confidence has been restored, operators and production customers optimistic about the market demand, dare to purchase and build positions.
In addition, the fastener industry in order to save material costs, you have to invest in technology, with good technology, but also for themselves to open up more extensive market resources.