Health development logo for the fastener industry

The fastener industry is an industry that relies on raw materials, and rising raw materials will naturally increase the cost of fastener production. In the current situation, fastener companies should timely adjust product mix, control investment scale, and reduce non-productive expenses.

The fastener industry is an industry that relies on raw materials, and rising raw materials will naturally increase the cost of fastener production. In the current situation, fastener companies should timely adjust product mix, control investment scale, and reduce non-productive expenses, which is undoubtedly positive.

It is not difficult to see that the different capabilities of different enterprises, the current ability of the product-oriented enterprises is still insufficient, and the products are not accepted enterprises, the production capacity does appear to be surplus. Within the same company, there are products that are in short supply, and some products are not well sold.

Therefore, the problem of fastener production capacity cannot be generalized. Generally speaking, overcapacity or excess is biased. The survival of the fittest and innovation are the hallmarks of the healthy development of the industry.

In recent years, overcapacity of fasteners and raw materials have skyrocketed, and at the same time, it has come to the fastener industry. The capacity mentioned by everyone mainly refers to the restrictive development of ordinary standard parts (less than 8.8 grade fasteners). Looking back at the history of the fastener industry, we can find a regular phenomenon, that is, whenever the market is booming, then product saturation will inevitably occur, followed by macro-control and compression, followed by a round of supply shortage, and manufacturers will once again increase production capacity. As a result, the product has once again become saturated, so the rubber industry has come over in the past 20 years.

Along with overcapacity and product saturation, cold rolled steel wire rods continue to rise. In fact, the direction of raw materials is the influence of the international environment. Since 2004, global iron ore prices have risen step by step. In 2005, iron ore prices soared by 71.5%. This year is expected to rise by 10%. The commonly used cold-stained steel swrch35k ​​has risen to 3,900-4,400 yuan, and carbon steel 45# has also risen to 3,400-3,800 yuan, up 500-800 yuan from last month.

The main reasons for the recent steady increase in raw material prices are: First, controlling the production capacity of the steel industry has eased the relationship between supply and demand, and the state has strengthened the macro-control of the steel industry, and the steel market has a rank development. Secondly, the decline in steel imports and the increase in exports are conducive to price stability. Once again, market confidence has recovered, operators and production customers are optimistic about market demand, and dare to purchase and open positions.

In addition, if the fastener industry wants to save on material expenses, it must invest in technology. With good technology, it can also open up more market resources for itself.