How hardware fasteners respond to market changes

In the entire manufacturing industry chain, raw material price fluctuations have nothing to do with non-influence of the downstream fastener industry, but not a single solution, the future development of fasteners should fundamentally solve the problem, how to solve the transition of low-end products Capacity? How to grasp the procurement timing of raw materials to achieve low-cost production capacity? How to reduce production costs and save resources? These are questions that companies should face.

Raw materials are "rising". Passive enterprises will be shuffled. To survive and develop, we must take the initiative to open up new paths and improve our internal strength to cope with market changes! There are two main ways to reduce costs: 1. Reduce the content of alloying elements or use other low-cost alloy elements as reinforcement materials; 2. Reduce the manufacturing cost of fasteners, such as non-modulated steel used to reduce the heat treatment process in the bolt production process. , Free cutting steels used to improve nut machining capabilities. The introduction of technology in the automotive industry in China has played a role in promoting the application of new materials for cold heading steel. Some of the major high-strength fasteners have adopted foreign material standards, and they believe that to achieve the goal of saving resources, accelerating the development of special bolt steels Will be valued in the next 3-5 years. This is also the trend of tight enterprises in the situation of soaring raw material prices.

We should look to the future. Key national construction projects such as "high-speed rail," "space and aviation," "highways," and "airports," are providing opportunities for tight-to-high-end enterprises. Boeing plans to add 3,400 aircraft in the next 20 projects, and the National Development and Reform Commission will invest 800 billion yuan. To build rail transit in 6 cities, according to 36 plans to build urban rail transit project cities, by 2020, the new operating mileage of urban rail transit will reach 6560 kilometers, and the demand for rail fasteners will reach 5.7 billion yuan. These large-scale projects will greatly increase the demand for high-strength fasteners such as high-strength fasteners and titanium alloys. It is not impossible to take off the “low-end” label.

The most talked about hardware fastener companies is “transition” and “upgrade”. However, under the premise of transformation and upgrading, the vast majority of Chinese fastener companies must face such a situation: the price of raw materials rises, and the appreciation of raw materials increases. , Labor costs rose. Rising raw material costs have caused companies to increase product prices. However, the premise of product price increases is the increase in technology and brand strength. This is a continuous process. This is a bottleneck for technology improvement for small and medium-sized fastener companies. They need to survive hard.

Looking back at the course of development of the fastener industry in the past, it is not difficult to find that the saturation of the product will inevitably occur whenever the market is booming. China's fastener production accounts for a quarter of global production, but most of them are low-intensity and low-grade products, among which standard items below 8.8 account for about 45%-50%, in an environment where raw material prices are high, The overcapacity of low-grade standard parts has become a stumbling block to the development of the entire fastener industry. Excessive capacity, a large number of inventories have led to tight operating funds, companies want to convert costs into profits have to find new ways, increase investment in technology, with good technology in order to open up broader market resources.