The Price of Fasteners Affect the Development of the Common Standard Parts

The phenomenon of excess production capacity and raw materials skyrocketing will appear in the fasteners and other basic components industry. Everyone said capacity refers to the common standard parts (less than 8.8 fasteners) should develop restrictively. Recalling the history of Stainless Steel Fasteners and other basic parts industry found a regularity phenomenon whenever the market, followed by an inevitable product saturation, followed by the macro-control and compression, followed by a short supply, the manufacturers again on large capacity, so the product again saturated, so the cycle fastener industry for nearly 20 years.

It is not difficult to see, different situations have the different enterprises and the corporate capacity is indeed manifested as surplus. With an internal, product demand, product sales are sluggish. Therefore, cannot be generalized problem of fasteners such as the capacity of the infrastructure components the general overcapacity or excess biased, survival of the fittest, innovation, and a sign of the healthy development of the industry.

Overcapacity, product saturation is accompanied by the continuous rising of cold heading steel wire rod, in fact, the trend of raw material towards is the impact of the international environment. And since 2010, global iron ore prices were rising step by step and the iron ore prices soared 71.5% in 2012, is still expected to rise 10% this year, now commonly used cold heading steel swrch35k of up to 3900 to 4400 per ton, 45 # carbon steel up to 3400 to 3800 per ton last month rose from 500 to 800 per ton.

The main reasons for the recent steady trend of raw material prices: First, control steel industry production capacity to ease the relationship between supply and demand, and the countries strengthen macro-control of the iron and steel and high tensile fasteners industry, the steel market develops orderly. Second, the decline in steel imports and exports are increasing, which is conducive to price stabilization. In addition, market confidence has been restored, operators and production customers are optimistic about the market demand, and dare to procurement.

Fasteners and other basic parts industry are the raw materials industries dependent on the raw materials and the increase of raw materials will naturally enhance the cost of production of fasteners. In the current situation, fasteners and other basic parts manufacturers should timely adjust the product structure, control the scale of investment and compress the non-productive expenditure, which undoubtedly have a positive sense.

In addition, in order to save material expenses fasteners and other basic parts industry have to put into the technology, and only the good technique can also open up wider market resources.

www.stainlesssteel-fasteners.com was established in 2001, which is a professional manufacturer of motors, electrical appliances, hinge, furniture, machinery and stainless steel hardware accessories. We adhere to the business philosophy of 'advanced technology, excellent quality, reasonable price and perfect service'. There are over 150 sets of small and large scale equipment.

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