After nearly 40 years of development through reform and opening up, my country's fastener industry has completed a transformation from small to large. Its output ranks first in the world, and it is a veritable major producer and exporter. It is now in a period of transformation and development from large to strong. It is a long-term and arduous task for the fastener industry to make a big country stronger. From a big country to a strong country, it is worth noting the current market development trend.
Fasteners are the most widely used mechanical basic parts. As China joined the WTO in 2001 and entered the ranks of major international trading countries, a large number of Chinese fastener products were exported to countries around the world, and fastener products from all over the world continued to pour into the Chinese market. With the development since the reform and opening up, China has built the world's largest professional fastener production system with complete varieties and specifications and high quality, and has become the world's largest fastener production and export base.
From January to December 2018, China's export volume of steel or copper standard fasteners was 3.29 million tons, a year-on-year increase of 12.9%; from January to December 2018, China's export value of steel or copper standard fasteners was US$65,867,950, a year-on-year increase of 12.9%. An increase of 27.7%.
As the most basic and versatile mechanical basic parts, the fastener industry plays a decisive role in the country's new strategic emerging industries and has broad market demand and good development prospects. At present, there are more than 8,000 fastener manufacturing enterprises registered with the industrial and commercial registration in my country. There are many small and micro enterprises, and there are only more than 2,000 above designated size. In 2016, the output was more than 7.45 million tons and the sales volume was 75 billion yuan, accounting for the world's total fasteners. However, our sales revenue only accounts for 1/8 of the world's total fastener sales. Compared with Asia and the world's advanced countries, the average unit price is still far behind. Our country is currently a big fastener producing country, but it is not a powerful country. Fastener companies are distributed all over the country, and the coastal areas are relatively concentrated and develop rapidly; on the contrary, the central and western regions are not active enough. Therefore, the situation of strong in the east and weak in the west has not fundamentally changed.
Most fastener companies face the dual challenges of industry supply-side structural reform and market demand due to low automation, backward technical equipment, poor product quality, low quality grade, and small enterprise scale. High-end fasteners are also an important part of the national strategic emerging industries. Strategic emerging industries require a large amount of equipment and facilities to support, and are inseparable from various fasteners. As strategic emerging industries, energy-saving and environmentally friendly technical equipment and products, network infrastructure and mobile communication equipment, advanced medical equipment in the bio-industry, and high-end manufacturing Aerospace, basic space satellites, rail transit equipment, marine engineering equipment, smart manufacturing equipment, new energy nuclear energy, reactors, wind turbines, new energy vehicles, hybrid and pure electric vehicles, etc. all require the use of fasteners in large quantities. Performance quality will directly affect the performance and quality of these industrial products.
In 2018, amid the tense Sino-US trade war, Jiaxing’s fastener exports grew against the trend
As the largest distribution center for my country's fastener industry, Jiaxing is also China's fastener export base and a global carbon steel fastener production base. It plays a decisive role in China's fastener industry. In 2018, Jiaxing's total import and export of fastener products was US$1.342 billion, a year-on-year increase of 34.60%, accounting for 3.14% of the city's total import and export, of which exports were US$1.299 billion, a year-on-year increase of 34.84%, accounting for 4.25% of the city's total exports. Imports were US$43 million, a year-on-year increase of 27.57%, accounting for 0.35% of the city's total imports.
1. The main characteristics of Jiaxing’s fastener exports in 2018
1. From the perspective of export regions, the export volume of major export markets continues to grow. In 2018, Jiaxing City's fastener export markets were still dominated by the United States, the European Union, and Russia. The export volume of these three major markets reached US$846 million, an increase of 40.89% over the same period last year, accounting for 65.13% of total exports. Among them, exports to the United States were US$386 million, a year-on-year increase of 37.18%; exports to the EU were US$325 million, a year-on-year increase of 46.13%; exports to Russia were US$135 million, a year-on-year increase of 40.70%.
2. From the perspective of export entities, the export volume of leading enterprises increased year-on-year. In 2018, there were 29 companies in Jiaxing City with a fastener export volume of more than 10 million US dollars, 7 more than the same period last year, achieving exports of 742 million US dollars, a year-on-year increase of 51.74%, accounting for 57.11% of the city's fastener exports. In 2018, the top four companies in Jiaxing City's fastener product export volume were Haining Haixun Trading Co., Ltd., Jinyi Industrial Co., Ltd., Zhejiang Dongming Stainless Steel Products Co., Ltd., and Jiaxing Fengjie Trading Co., Ltd., with annual export volume All are above US$50 million.
3. From the perspective of trade methods, general trade occupies a dominant position in export trade. In 2018, Jiaxing's general trade export volume of fasteners was US$1.235 billion, accounting for 95.07% of the city's total fastener exports, which was basically the same as the same period last year.
4. The average export unit price of fastener products has increased. In 2018, the average unit price of steel fasteners, which accounted for 99.26% of the export volume, was US$1,472/ton, a year-on-year increase of 21.35%; the average export unit price of copper fasteners was US$9,956/ton, a year-on-year increase of 13.27%; aluminum fasteners The average export unit price was US$3,205/ton, a year-on-year increase of 9.61%.
1. The impact of Sino-US trade friction is not yet obvious. The United States is one of the major overseas export markets for Jiaxing's fastener companies. During the EU's ten-year anti-dumping process against my country's fasteners, the U.S. market was an important supplement to Jiaxing's fastener companies' exports. In 2018, Jiaxing's total exports of fastener products were US$1.299 billion, of which US$386 million was exported to the United States, accounting for 29.76% of the city's total fastener exports, which was basically the same as last year. Sino-US economic and trade frictions have continued to escalate in 2018, but the impact of Jiaxing fastener companies’ exports of US fasteners is not yet obvious.
2. Exports to the EU gradually resumed. Since 2007, the EU has adopted anti-dumping measures against China's fasteners exported to the EU. Jiaxing's exports of EU fastener products have dropped from US$330 million in 2008 to US$150 million in 2015, a decrease of 54.5%. Driven by China's victory in the WTO's final ruling on the EU fastener enforcement case in January 2016, some companies in Jiaxing are gradually resuming exports to the EU. In 2018, Jiaxing's exports of EU fastener products amounted to US$325 million, a year-on-year increase of 46.13%. Accounting for 24.99% of the city’s total fastener exports.
3. Countries along the “One Belt and One Road” have good growth momentum. In 2018, Jiaxing's fastener export companies actively explored diversified export markets while maintaining good growth with traditional trading partners. Export trade with countries along the “Belt and Road”, Latin America, and Africa has maintained rapid growth, with year-on-year increases of 37.66%, 42.90%, and 17.12% respectively.
4. High comprehensive costs affect export competitiveness. Jiaxing City's fastener export products are mainly steel fasteners, accounting for 99.26%. Affected by supply-side reforms and environmental protection inspections, steel prices remain high this year, and corporate production costs have increased significantly. On the other hand, rising tax costs, energy costs, and labor costs also restrict companies from further expanding production and exports.