Taiwan's fastener exports in the second quarter hit a new quarterly high

According to a report from the Foreign Trade Department of the China Metals Industry Co., Ltd., according to information provided by the Research and Development Center of the Metal Industry, Taiwan’s fastener exports amounted to NT$30.2 billion in the second quarter of 2011, driven by global rigid demand, which was a 14% increase over the first quarter. For the first time, it exceeded the export target of 30 billion yuan per quarter.

The report of the Metal Industry Research and Development Center pointed out that with the economic growth driven by exports, the overall output value of Taiwan's fastener industry has also increased to 32.5 billion Taiwan dollars, of which exports accounted for 93%, to 30.2 billion Taiwan dollars. In the second quarter, Taiwan’s local fastener market demand increased by 10% in the quarter to NT$3.3 billion.

In the first half of 2011, Taiwan's fastener industry completed a total output value of 61 billion Taiwan dollars, and its export value and imports amounted to 5,670 million Taiwan dollars and 2,1 billion Taiwan dollars, an increase of 20% and 12% year-on-year. At the same time, local fastener market demand increased by 17% to NT$6.4 billion.

In the first half of the year, the United States was the largest importer of fasteners in Taiwan, accounting for 34%, followed by Germany, the Netherlands, Japan, and the United Kingdom, which accounted for 10%, 6%, 6%, and 4%, respectively. Among them, the average unit price of fasteners exported to Japan is the highest among these five countries, which is TWD 93.4/kg.

In addition, Japan, the United States, China, Germany, and South Korea are the top five suppliers of fasteners in Taiwan. In the first half of the year, Taiwan's imports of fasteners from the top five suppliers accounted for 53%, 10%, 7%, 7% and 5%, respectively.

Taiwan's fastener industry is facing challenges According to the analysis of the Metal Industry Research and Development Center, the main factors affecting the future development of Taiwan's fasteners include the European sovereign debt crisis, the uncertainty of the U.S. economy, the increase in raw material prices, and the tightening of global credit.

In the first half of 2011, Taiwan’s fasteners exported to the European Union increased by 30% year-on-year, and reached a new monthly high of 48,000 tons in May, mainly driven by strong demand from Germany, France and the United Kingdom, and the EU’s production in mainland China. Fasteners impose anti-dumping duties. However, due to the fiscal tightening policies of Greece, Italy, and Britain, as well as the debt crisis, combined with the stagnation of GDP growth in Germany and France, Taiwan's fastener exports are likely to slow in the next few months.

Development opportunities for Taiwan's fastener industry Although Taiwan's fastener industry needs to be vigilant against the "global economic crisis" that is likely to recur in the future, it also welcomes a number of development opportunities.

First, in July, China National Steel Corporation invested in factories in the mainland to enter the field of nickel-titanium alloy materials, and can produce high-grade mold steel and stainless steel. The titanium alloy materials produced by the plant can be shipped back to Taiwan to produce steel plates and wire rods. . It is understood that this type of titanium alloy wire rod will be widely used by local fastener manufacturers in Taiwan to produce higher-end fasteners.

Second, the increasing demand for wind power fasteners in the world will give Taiwan fastener manufacturers an opportunity. For example, in India, the demand for such fasteners has grown rapidly in recent years. In June 2011, Sunderland Fasteners, a subsidiary of India’s TVS Group, announced that it will spend R$ 500 million to build a new factory in Pondicherry, India. Production of wind power with special fasteners.

Finally, Taiwanese manufacturers will also benefit from the EU's anti-dumping measures against other countries to some extent. It is reported that the European Commission has recently started anti-dumping investigations on five types of stainless steel screws from India. The customs codes are 73181210, 73181410, 73181530, 73181561, and 73181570, mainly because the five types of stainless steel screws that India exported to the European Union have been from 2005. From 1,000 tons to 21,000 tons in 2010. The anti-dumping investigation will prompt distributors to switch to Taiwan for procurement.

Despite the sluggish global economy, Taiwan Metals Research and Development Center expects that Taiwan's fasteners will maintain a strong growth trend in the second half of the year due to the demand from emerging economies and the growth of the global auto market.

The center expects that Taiwan's fastener exports will reach NT$30 billion in the third quarter and NT$117 billion in the year. The annual output value will increase from NT$109.8 billion in 2010 to NT$126 billion, which represents a year-on-year increase of 15%.



Unit: NT$1 billion Source: Taiwan Metal Industry Research and Development Center