Janus Perspective: Chinese Market | Attachment + fixing magazine
January 24, 2022
A review and overview of the global fasteners market
Named after the Roman god who is often described as having two faces – due to his ability to look forward and backward – the Janus perspective is a unique characteristic that includes a wide range of global business leaders. de fixation, all of whom brought their retrospective of 2021 and their reflections on the prospects and challenges for 2022.
Fanty Fan, English Editor, ChinaFastener Magazine
In 2021, China’s fastener industry encountered many challenges, such as anti-dumping, huge fluctuations in raw material prices, energy conservation and emission reduction. However, China’s fastener industry has been able to continue to develop and achieve significant milestones.
From January to September 2021, China’s fastener export volume was nearly 3.52 million tons, a year-on-year increase of 19.8%. The export value was US$8.07 billion, an increase of 27.8% year-on-year.
However, generally speaking, the supply chain of China’s fastener industry is still uneven. There is an oversupply of low-end products while the supply of high-end products is insufficient, which provides more opportunities for high-end fastening companies. For example, Qifeng Precision Industry Sci-Tech Corp is engaged in the production of high-end fasteners, which are widely used in railway, construction, aerospace, engineering machinery, automotive, ships and others. In the first half of 2021, the company’s operating revenue was RMB 93.88 million (€12.9 million), a 32% year-on-year increase. In December 2021, Qifeng Precision also announced that the company plans to apply for listing on the Beijing Stock Exchange at a reserve price of 5.5 RMB per share.
New technological breakthroughs
In November 2021, the high-performance steel materials team, led by Professor Dong Han of Shanghai University, successfully developed 16.8 and 19.8 grade fasteners, which is a breakthrough in fasteners and materials high resistance. This is beneficial to promote light manufacturing of major equipment in China. This breakthrough also indicates that China’s fastener production capacity is keeping pace with the world.
At present, China is implementing the 30:60 development strategy, which means that carbon dioxide emissions will peak by 2030 and China will achieve carbon neutralization by 2060. For this reason, Chinese fastener enterprises are accelerating transformation and upgrading. Development is in line with the trend of clustering, high-end and intelligence, in order to achieve green, low-carbon and sustainable development as quickly as possible.
As for clustering, China’s well-known fastener production bases include Haiyan (Zhejiang), Yongnian (Hebei) and Dainan (Jiangsu). Fastener companies from the Greater Bay Area also gather in Yangjiang (Guangdong). In just three years, more than 100 enterprises engaged in fastener production and supporting services have moved to Yangjiang. The production value is estimated at 10 billion RMB.
In terms of technological innovation, in addition to accelerating the research and development of special steels, China has gradually approached the international advanced level in terms of material selection, structural design, manufacturing process , special process, testing, surface coating and quality control. The integration of different subjects such as mechanical manufacturing, information technology and various high and new technologies will continuously inject new vitality into the development of the fastener industry in China.
With the implementation of energy saving and emission reduction policies, and rising labor costs in China, Chinese enterprises are also accelerating smart production upgrades. A number of digital workshops, digital chemical factories and digital enterprises have sprung up. For example, in order to improve the company’s digital transformation and increase production capacity, Zhejiang Tong Ming implemented the high-end stainless steel fasteners digital chemical factory project, with full investment of no less than 350 million RMB.
Looking forward to 2022, energy conservation, emission reduction and industrial upgrades are still the focus of China’s fastener development. Chinese fastener companies will also face many challenges, but also opportunities. In China, there are always a number of excellent enterprises emerging, leading the steady development of China’s fastener industry.
For example, Fastener Expo Shanghai took advantage of the trend to redefine the expo as the high-end fastener industry’s global innovation platform. It aims to link global high-quality resources and provide excellent opportunities for industrial upgrading, technical exchanges and business development. The next edition will be held with great fanfare at the National Convention and Exhibition Center (Shanghai) from June 8 to 10, 2022. At that time, visitors will be able to see the new heights of China’s fastener development.