In the fastener industry, market demand continues to rise, driven by various economic and environmental factors. According to a recent report presented by Bruce Darling, Vice President of Material Management at Porteous Fastener in the U.S., to the Western Pacific Fasteners Association, the 2011 Asian fastener market was shaped by fluctuating steel prices, currency shifts, and geopolitical challenges.
In Taiwan, steel prices remained on an upward trend, while the U.S. dollar weakened, creating uncertainty for international buyers. Meanwhile, North Africa faced civil unrest, forcing European buyers to make tough decisions about sourcing. In mainland China, rising steel and labor costs, along with limited plant expansions, created a challenging environment. Power outages and pollution also became major concerns for manufacturers.
At the end of May, China National Iron and Steel Corporation in Taiwan reduced its pricing for certain steel products. While plates and rods remained stable, most other categories saw price cuts. For example, HRC dropped by NT$1,754 per ton, HRC by 1,419 yuan per ton, electro-galvanized steel by RMB1,500 per ton, and electrical steel by RMB2,600 per ton. Hot-dip galvanized sheet also fell by 1,613 yuan per ton.
In mainland China, the outlook for fastener prices remains upward. Natural disasters in Australia and Brazil caused iron ore prices to surge, leading some industry experts to predict a potential 66% increase in steel prices in 2011. Darling estimated that steel prices would likely rise by 10–15% during the year, with an additional 5–8% increase expected later in 2011.
Although Taiwan's fastener industry showed improvement in 2010 compared to 2009, it still did not meet expectations. A recent round of steel price increases saw a 9.3% rise, and industry insiders anticipate even larger increases in the future. Although the U.S. dollar is currently stable, past periods of weakness have led to significant disruptions.
Taiwanese manufacturers have been investing in new machinery, though much of this is aimed at replacing outdated equipment. Some companies are shifting toward non-standard parts, reflecting a broader industry trend. North America remains Taiwan’s largest fastener market, but Europe presents more uncertainty.
The China-EU anti-dumping cases have influenced buyer behavior, with some turning to Taiwan for alternatives. However, if China wins the case, these buyers may return to mainland China. Darling predicts that fastener purchase prices in Taiwan will continue to rise over the next two quarters, with the second quarter's steel price adjustments playing a key role. Most industry players believe steel prices will eventually decrease.
Despite this, the domestic demand for fasteners is expected to grow due to the rapid development of high-speed rail and wind power industries. This growth could lead to challenges for China’s full export of fasteners in the coming years.
Additionally, mainland China is grappling with serious power shortages, which have disrupted steel and fastener production. Pollution is another critical issue, with many steel mills facing potential shutdowns, leading to raw material shortages and higher steel prices. Only a few factories in mainland China are currently expanding, highlighting the ongoing challenges in the sector.
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