Metal Fastener Industry Upgrade Promotes Development

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 are faced with such a situation: the price of raw materials rises, and the price of raw materials increases. , Labor costs rose. Rising raw material costs have caused companies to increase product prices, but the premise of product price increases is the increase in technology and brand strength. This is a continuous process. This is a bottleneck for the improvement of technology for small and medium-sized fastener companies. They need to survive hard.

Metal fasteners need to be removed from the "low-end" tag Looking back at the past development of the fastener industry, it is not difficult to find that when the market appears strong sales, product saturation will inevitably occur. 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.

We should look to the future. Key national construction projects such as “high-speed rail,” “aerospace,” “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 remove the “low-end” labels!

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 problems 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!

Controlling production costs and saving resources Hardware fasteners have always been dominated by steel materials. Due to fierce market competition, quality and cost have become the main means for competition among fastener companies.

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 the use of non-modulated steel 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 use foreign material standards. Luo Baihui believes that to achieve the goal of saving resources, accelerating the use of special steel for special bolts R&D 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.

Always pay attention to grasp the timing of procurement For fastener manufacturers, all finished products are inseparable from a large number of raw materials such as iron ore, wire rods, raw material prices are too fast too high, has made downstream demand difficult to follow up, late The sharp reversal of ore prices may be difficult to avoid. Raw material price fluctuations have a decisive effect on the procurement costs of fastening companies in China. Actively purchasing raw materials at relatively low prices, preparations for cost reductions in the future will be made. Therefore, being able to pay attention to fluctuations in raw material prices and buying at a low cost is also one of the conditions for the success of a business decision maker.