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2010 China Fastener Export Forecast

With recovery of global economy, demand for fasteners in overseas market is on the rise and China fastener export is back on track. It is reported that orders from overseas market are surging in the first half of 2010 which seems that the hardest time has passed for most of China fastener companies.

But does it indicate that export of fasteners in China has fully recovered? And will such positive trend continue in the second half of 2010? Reporters from China Fastener Info have interviewed some well-known fastener export-oriented companies in China in order to help you find the truth.

Generally speaking, orders in most China’s fastener companies saw strong grow in the first half of this year.

“We have received lot of orders from overseas customers and our monthly production reaches 7,000 tons now with sales revenue up 50%. Our full-year sales are expected to reach 350 million RMB,” said Betty Chen, sales manager of Zhejiang New Oriental Fastener Co., Ltd.

Chen also pointed out that increase in orders should be attributed to the recovery of global economy, especially in industries such as real estate and construction in other countries.

Sales in Zhejiang Tongming Stainless Steel Products also saw a sharp rise. According to Jiashan Fasteners Import & Export Manufacturers Association, Zhejiang Dongming’s export volume was up 1776.42% to $ 9.33 million during the first four months of 2010.

“Everything goes well now. Our orders surge so rapidly that our production department has to work overtime, and some orders have to give up because our production line is fully booked,” said Dai Pusong, marketing manager from Zhejiang Tongming, “Our monthly production has reached 5,000 tons with an annual increase rate in sales revenue of 20%. Our sales are projected to reach 1.1 billion RMB this year.” He also indicated that his company is prepared to purchase a large number of equipment to improve production capacity because of the current favorable developing environment.

Ding Hongbo, marketing manger of Hifasters also proudly noted that, “Because of the surging demand, our orders from overseas markets shows ‘exceptional growth’ with monthly shipment of 100 containers. Sales are expected to rise to $50 million in 2010 from $ 4.3 million last year.”

Renming hua, general manager of Jiashan Zhongsheng Metal Products Co., Ltd, also projected that sales will be up 30%-40% to 160 million-180 million RMB year-on-year. “There is no doubt that our increasing sales should be attributed to the economic recovery but also owe much to our hardworking staff and the help from China Fastener Info.”

On top of companies in mainland China, Taiwan fastener companies were reported to see growth in orders due to the U.S. residential real estate construction markets.

Chun Yu Works & Co. Ltd. reported its production is fully booked to fill orders for auto and construction fasteners from U.S. customers. With monthly shipments reaching 7,000 metric tons, Chun Yu is projecting 10% to 20% second quarter sales revenue growth. April sales revenue was up 54.55%.

In general, several factors help increase in orders for China fastener companies from overseas markets, including increasing demand boosted by global economic recovery, the fluctuation of steel price, the possible appreciation of RMB and negative influence of European debt crisis in the future.

However, China fastener exports may drop in the second half of this year because many overseas buyers have bought large quantity in the first half of this year and their stocks should have time to digest in the second half.

In addition, “European debt crisis may have a significant negative impact on China’s export in the second half of year, especially on fastener industry and we may encounter many unpredictable changes. Therefore, we should not be too positive to neglect the negative effects,” stated Emily Chang, show manager of the 4th Guangzhou Fastener Trade Show which will set for September 8-10, 2010, a large international and professional fastener exhibition in China.

Besides, “China’s policy on real estate will also have effect on fastener industry. As to these uncertainties we should work hard to improve our competitive edge and pay close attention to industry trend so that we can take proper measure to deal with them at any time,” commented Ren.