Overview: As one of the most important downstream industries of industrial wire, the development status of the fastener industry has a direct impact on the variety of industrial wire. At present, the base material of threaded fasteners such as bolts and nuts is mainly cold heading steel; Drawing materials Q195 and Q235 have entered the market for the production of small hardware standard parts such as iron wire, nails, and rivets. According to Mysteel statistics, the output of sample industrial wire cold heading steel mills in China in 2022 was 53.614 million tons, an increase of 6.39 million tons compared to 2021, a year-on-year increase of 13.53%. Among them, the output of cold heading steel was 9.95 million tons and the output of drawn steel was 17.95 million tons. According to the Fastener Branch of China Machinery General Parts Industry Association, the production of fasteners in China reached 8.8999 million tons in 2021, a year-on-year increase of 8.97%. It is expected that the production of metal fasteners in China will reach 9.2893 million tons in 2022 and 9.7798 million tons in 2023. This article will provide a brief overview of the industry.
1、 Introduction to fasteners
1. Characteristics and Applications of Fasteners
Fasteners are a general term for a type of mechanical component used to fasten two or more parts (or components) together to form a whole. According to the product form, fasteners include twelve major categories: bolts, bolts, screws, nuts, self tapping screws, wood screws, retaining rings, washers, pins, rivets, composite parts and connecting pairs, welding nails, etc.
Its characteristics are a wide variety of specifications, diverse performance and applications, and a high degree of standardization, serialization, and generalization. Therefore, some people also refer to a type of fastener that already has national standards as standard fasteners, or simply as standard components.
At present, it is widely used in industries including energy, electronics, electrical appliances, machinery, chemical industry, metallurgy, molds, hydraulics, etc. Various types of fasteners can be seen on various machinery, equipment, vehicles, ships, railways, bridges, buildings, structures, tools, instruments, chemicals, instruments and supplies.
2. Industry chain situation of fastener industry
The upstream of the fastener industry mainly includes raw materials and fastener production equipment, where raw materials include non-ferrous metals such as steel, copper, and aluminum, as well as plastics. Fastener production equipment includes cold heading machines, hot forging machines, etc. Representative steel companies include Baosteel, Shougang, Magang, TISCO Stainless Steel, Jiangxi Copper, Tongling Nonferrous, Nanshan Aluminum, Mingtai Aluminum, etc. The main suppliers of plastic materials include Covestro, Sinopec, Xinjiang Zhongtai, and Shaanxi Beiyuan.
The midstream of the fastener industry is the production process of fasteners, which can be divided into metal fastener production and plastic fastener production according to fastener materials. Representative enterprises include Jinyi Industrial, Zhejiang Dongming, Chaojie Fastener, Ruima Precision, Qifeng Precision, etc.
The downstream application scope is wide, including automobiles, machinery, home appliances, construction, rail transit, aerospace, electronics industry, shipbuilding, etc.
3. Regional distribution of fastener industry
(1) Regional development situation
From the regional distribution of fastener industry chain enterprises in China, fastener industry chain enterprises are mainly distributed in three provinces: Hebei, Jiangsu, and Zhejiang, followed by provinces such as Shandong and Guangdong; In other places, such as Shaanxi, Hubei, Henan, Anhui and other provinces, although there are enterprises distributed, the number is relatively small.
From the distribution of listed companies, Zhejiang and Jiangsu are the two provinces with the best development of China’s fastener industry. Among them, Zhejiang Province has two major fastener industry clusters, Haiyan and Wenzhou, cultivating multiple leading fastener industry enterprises including Jinyi Industry, Changfeng Precision, Rongyi Precision, and Changhua Group. Jiangsu Province has leading fastener enterprises in segmented fields such as Ruima Precision and Zhenjiang Shares.
The model and sales volume are not as large as those in Jiangsu and Zhejiang regions, but the influence is constantly increasing, and export orders are growing. In addition to Haiyan and Wenzhou, Yongnian District in Handan City, Hebei Province is also one of the important gathering areas for China’s fastener industry. Although the scale and sales volume of enterprises in Yongnian Industrial Zone are not as large as those in Jiangsu and Zhejiang regions, its influence is constantly increasing, and export orders are increasing.
(2) Representing the development of the enterprise
The fastener industry in China can be roughly divided into two factions: one is fastener manufacturers that focus on a single or a few fields, with representative companies including Fuao Group, Chaojie Fasteners, Zhenjiang New Energy, and Changhua Group; Another type is manufacturers of fasteners covering multiple fields, with representative enterprises including Jinyi Industrial, Ruima Precision, Qifeng Precision, and Rongyi Precision. Overall, there are more companies producing fastener products covering multiple fields than those focusing on fastener products in a single field.
4. Development status of fastener industry
(1) The current development status of the global fastener industry
The global industrial fastener market is expected to grow from 84.9 billion US dollars in 2016 to 116.5 billion US dollars in 2022, with an estimated compound annual growth rate of 5.42%.
In recent years, with the economic and industrial development of countries such as China, the United States, Russia, Brazil, Poland, and India, the demand for fasteners will further increase. In addition, the growth of industries such as household appliances, automotive industry, aerospace manufacturing, construction industry, electronics industry, machinery and equipment manufacturing, and manufacturing aftermarket will also stimulate the demand for fasteners in the market.
The United States, Germany, the United Kingdom, France, Japan, and Italy are importers of fasteners and also exporters of high-quality fastener products. In terms of product standards, developed manufacturing countries such as the United States and Japan started early and have well-established industry standards, which provide certain technological advantages in fastener production.
(2) The current development status of China’s fastener industry
China is currently the largest producer of fasteners, and the fastener industry has maintained a stable growth trend in recent years. According to relevant data, China’s fastener production increased from 5.4797 million tons to 6.9109 million tons from 2018 to 2021, with a growth rate of 26.12%; From 2012 to 2021, the revenue of China’s fastener industry increased from 86.516 billion yuan to 109.589 billion yuan, with a growth rate of 26.67%. The fastest growth rate was in 2018-2019, with a year-on-year growth rate of 13.52%. In 2021, the market size reached 109.589 billion yuan, with a year-on-year growth rate of 4.60%.
5. Development Trends in the Fastener Industry
The current development status of China’s industrial fastener industry is still large but not strong. On the one hand, the domestic industrial fastener industry is largely unable to meet the production needs of the national machinery and equipment industry. Currently, high-strength and high-precision industrial fasteners still rely on imports; In the low-end market, the competition for industrial fasteners in China is fierce, and the market saturation is like overflowing when the water is full. On the other hand, some enterprises still lag behind in terms of competitiveness in technology, environmental protection, energy consumption, equipment, and talent internationally.
In the future, Chinese fastener enterprises will only rely on quality improvement and quantity growth to obtain profits. A group of smaller scale, weak technical strength, and no own brand fastener enterprises will be eliminated in the transformation and innovation. At the same time, the fastener industry is currently facing the requirement of industrial upgrading. With the requirements of reducing steel production capacity and upgrading environmental protection, the environmental investment cost of fastener enterprises has increased, the competition for low-end products has become fierce, and profits have correspondingly decreased. The demand for transformation and upgrading has become increasingly strong.
The development trend of the fastener industry can be summarized into three aspects: the direction of product structure adjustment is becoming increasingly clear, the domestic high-end fastener market is huge and growing rapidly, and there is a trend towards green production and industrial clusters.
Post time: Jul-11-2024