Top Ten Keywords for 2010 Fastener Incident Inventory

In 2010, the global economy gradually recovered and the Chinese fastener industry finished 2010 in an uncertain environment. In general, the economic situation of the industry is improving and the company can develop steadily. The transformation and upgrading continue. Looking back at the past, we can sum up lessons learned so that we can move forward better. Looking ahead, we can outline the blueprint for development and thus have more efforts. At the end of the year, you will be presented with the “2010 Fasteners Inventory” series in order to explore the path of industry development and work with your colleagues in the industry.

When warming up the financial crisis, the most talked about by fastener industry colleagues was “winter”. When the crisis gradually drifted away, the global economy began to recover. In early 2010, the development of China's fastener industry was finally back on track and everyone said it. The most important thing is to "warm up":

This year's performance of Dongtai Warwick has been greatly improved compared to previous years. The production plan has been scheduled to mid-December, and this year's sales are expected to reach nearly 150 million. Wuxi Anshida's sales in the first half of this year increased by nearly 50% compared to the same period of last year. The factory is operating at full capacity; the sales of Zhejiang Olympics this year have also increased year-on-year. It is estimated that sales in 2010 will reach more than 600 million yuan; Jiashan Zhongsheng’s performance this year has increased by 30%-40% compared with last year. It is expected this year. Annual sales of nearly 180 million...

It is predicted that the total number of fasteners this year can reach 6 million tons, which is more than 10% higher than the 5.3 million tons in 2009. In general, the development momentum of the fastener industry in China in 2010 was positive and business orders generally showed encouraging growth, and the export growth momentum was strong.

For the industry's future development prospects, industry insiders believe that the recovery will continue and it is likely to accelerate because the pulling effect of new energy industries such as automobiles, high-speed rail and wind power will gradually emerge. In addition, the World Trade Organization Expert Group issued a ruling that the anti-dumping measures and relevant regulations imposed by the European Union on fasteners imported from China are inconsistent with the WTO rules, which also means that China’s fastener companies are expected to return to the EU market. .

Of course, the current global economic recession is still at risk. Due to the impact of the European debt crisis, the US quantitative easing monetary policy, RMB exchange rate fluctuations, and international trade barriers, the development of the international market may be slow. Therefore, export-oriented fastener companies should make necessary adjustments as soon as possible, or they may face challenges in the future. Relatively severe market situation.

Appreciation Since the People's Bank of China announced on June 19 this year that it would further advance the reform of the RMB exchange rate formation mechanism and restart the exchange reform, the appreciation of the renminbi has reached nearly 3% for several months. The RMB exchange rate against the US dollar once approached the 6.62 mark, setting a new high since the exchange rate reform in 2005.

Near the end of the year, the RMB exchange rate is still “tangled” in a turbulent trend. China National Information CITIC issued a report saying that in 2011, the renminbi will continue to appreciate against the U.S. dollar, the euro and the Japanese yen will end depreciation, and will then enter the appreciation zone; and the renminbi may appreciate against the U.S., Europe, and Japan.

The appreciation of the renminbi means that it will curb and hurt exports, export prices will rise, and cost pressures will also become larger. As we all know, China's fastener industry has always been highly dependent on foreign trade, the average profit margin of the industry is low, and the added value of products is low. The appreciation of the renminbi is undoubtedly a major impact on fastener exporters that rely on cost advantages. Will severely squeeze the company's profit margins, but now we have been unable to choose whether or not to appreciate the renminbi, how to resolve the pressure should be more consideration.

When the foreign exchange market fluctuates frequently, it is a relatively safe choice for importing and exporting companies to use RMB settlement as far as possible, or to use foreign exchange for long-term protection and to avoid exchange rate risks. In addition, the fastener companies need to shake off the predicament, and the key lies in the transformation and upgrading of the company itself, starting the brand, increasing the added value of the products, and increasing the price of the right to speak.

Concussion In 2010, it can be said that steel prices have changed most frequently. Under the influence of the “three highs and one low” (ie, high output, high inventory, high cost, and low price) features of the Chinese steel market, steel prices have been It has risen and dropped, and has fallen and risen, showing a trend of fluctuating operation.

Under the impetus of iron ore price hikes, steel mills are under pressure from rising costs to shift cost pressures by raising the prices of steel products. In recent months, wave after wave of steel prices have proved that steel mills have Started a hand-held price to shift the pressure of rising costs.

Looking at the overall trend of steel prices in 2010, there is a trend of higher volatility. Industry professionals generally believe that at the end of this year and early next year, and even for a longer period of time, the Chinese steel market will maintain its fluctuating fluctuations and the price will rise. The plunge phenomenon will not be reproduced, and steel prices will gradually rise in the bottom shocks.

Steel as the main raw material required for fasteners, accounting for about 50% -60% of the price, the rise and fall of steel prices has always affected the nerves of China's fastener companies, from the current market analysis, with the further price of steel Rising, fastener companies will have to face the impact of profit dilution, coupled with the current intense competition in the industry, fastener companies in addition to price increases this retreat, perhaps the transformation and upgrading is a major breakthrough.

Anti-dumping (1) The WTO has found that anti-dumping measures of EU fasteners are in violation of regulations. On December 3, 2010, the World Trade Organization Expert Group issued a ruling report in Geneva to support China’s claim that EU’s anti-dumping measures against fasteners imported from China were determined. The relevant regulations are inconsistent with the WTO rules.

This case is the first time since China's accession to the WTO for the first time, it will resort to the WTO trade dispute with the EU. According to the report, the European Union adopted the relevant provisions on the protection of EU countries against dumping by non-EU countries on December 22, 1995 and the provisions on the application of formal anti-dumping duties on fasteners imported from China on January 26, 2009. Some of the provisions and the corresponding measures adopted in accordance with the provisions are inconsistent with the WTO rules. The report pointed out that the EU's practices have infringed upon China's due rights and suggested that the EU adjust the relevant regulations in accordance with WTO rules.

The person in charge of the Ministry of Commerce’s Bureau of Law and Regulations stated that for a long time, the European Union has always required Chinese export companies to demonstrate compliance with the EU’s so-called “separate tax rate” requirements in anti-dumping responding, which imposes a heavy burden and unfair treatment on Chinese companies’ anti-dumping response. The WTO expert group's ruling clearly shows that the EU's anti-dumping legislation and practices are discriminatory and violate the WTO rules. In the case of the fastener case precedent, the WTO panel is likely to draw the same conclusion on the issue of individual tax rates in shoe products.

In November 2007, the EU launched an anti-dumping investigation on iron or steel fasteners (excluding stainless steel) imported from China and imposed a formal anti-dumping tax of up to 87% on February 1, 2009 for a period of five years. On July 31, 2009, China filed a consultation request under the WTO dispute settlement mechanism on the anti-dumping measures of the European Union.

(2) Ministry of Commerce imposes anti-dumping duties of 6.1% to 26.0% on imports of carbon steel fasteners from the European Union. On June 28, 2010, the Ministry of Commerce issued the announcement No. 40 of 2010, which announced the tightening of imported carbon steel products originating in the European Union. The final ruling of the anti-dumping investigation of the firmware. The investigation authority determined that there was dumping of imported products originating in the European Union, and the domestic carbon steel fastener industry was substantially damaged, and there was a causal relationship between dumping and substantial damage, and it was decided that as of June 29, 2010, The products imported from the European Union are levied anti-dumping duties ranging from 6.1% to 26.0% for a period of 5 years. The product is classified in the "Import and Export Tariff of the People's Republic of China" tariff code, 73181400, 73181500, 73182100 and 73182200. Product Name: Carbon Steel Fasteners (English name is IronIronorSteelFasteners).

According to industry insiders, this action by the Ministry of Commerce is a response to the European Commission’s levying anti-dumping duties of up to 87% on steel fasteners imported from China on February 1, 2010, and to a certain extent, the transformation of the Chinese domestic fastener industry. The upgrade created a favorable environment.