The overcapacity of basic parts such as fasteners and soaring raw materials will come down to the basic parts industry such as fasteners. Everyone's production capacity mainly refers to the restrictive development of ordinary standard parts (less than 8.8 fasteners). Looking back at the history of fasteners and other basic parts industries, we can find a regular phenomenon, that is, whenever there is a strong market, product saturation will inevitably follow, followed by macro-control and compression, followed by a short supply, and the manufacturers will again As a result of the large capacity, the product has become saturated again. As a result, the fastener industry has come this way in the past 20 years.
It is not difficult to see that different companies have different situations, and the current capacity of the products that are on the road is still insufficient. However, if the products are not accepted, the production capacity does indeed show an excess. Within the same company, there are products in short supply, and there are also poor sales of products. Therefore, the issue of production capacity of fasteners and other basic components cannot be generalized. In general, overcapacity or lack of surplus has been biased. The survival of the fittest and innovation are the signs of healthy industrial development.
With the overcapacity and product saturation, the cold rolled steel rods continue to rise. In fact, the trend of raw materials is the impact of the international environment. Since 2004, the global iron ore price has risen steadily. In 2005, the price of iron ore soared by 71.5%. This year, it is expected that it will still rise by 10%. Nowadays, the commonly used cold-rolled steel swrch35k has risen to 3,900-4,400 tons, and the carbon steel 45# has also risen to 3,400-3,800 tons, which is 500-800 tons more than the previous month.
Analysis of the reasons for the recent steady increase in the price of raw materials mainly includes the following: First, control of the production capacity of the iron and steel industry tends to ease the relationship between supply and demand, the state strengthens the macro-control of the steel industry, and the steel market has a rank development. Second, the decrease in steel imports and the increase in exports are conducive to stabilizing prices. Again, market confidence has been restored. Operators and production customers are optimistic about the market demand and dare to purchase and open positions.
Basic parts industries such as fasteners are industries that rely on raw materials, and rising raw materials will naturally increase the production cost of fasteners. In the current situation, fasteners and other basic parts manufacturing enterprises should timely adjust the product structure, control the scale of investment, and reduce non-productive expenses. This is undoubtedly also positive.
In addition, fasteners and other basic parts industries need to invest in technology if they want to save material expenses. With good technology, they can also develop more market resources for themselves.