Insight

A review and preview of the global fastener market

Named after the Roman god who is often depicted as having two faces – due to its ability to look to the future and to the past – the Janus Perspective is a unique feature that includes a wide cross section of global fastener business leaders, who have all contributed their retrospective of 2021 and thoughts on 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 reductions. However, China’s fastener industry has been able to continue to develop and achieve some significant milestones.

From January to September 2021, China’s fastener export volume was nearly 3.52 million tonnes, a year-on-year increase of 19.8%. The export value was US$8.07 billion, a year-on-year increase of 27.8%.

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 for the high-end products is inadequate, which gives more opportunities to high-end fastener enterprises. For example, Qifeng Precision Industry Sci-Tech Corp is engaged in producing high-end fasteners, which are widely used in railway, construction, aerospace, engineering machinery, automobile, ship and other industries. In the first half of 2021, the company’s operating revenue was RMB 93.88 million (€12.9 million), a year-on-year increase of 32%. In December 2021 Qifeng Precision also announced that the company planned to apply for listing on the Beijing Stock Exchange at a reserve price of RMB 5.5 per share.

New breakthroughs in technology

In November 2021 the high performance steel materials team, led by Professor Dong Han from Shanghai University, successfully developed Grade 16.8 and 19.8 fasteners, which is a breakthrough in high strength fasteners and materials. This is beneficial to promote the lightweight manufacturing of major equipment in China. This breakthrough also indicates China’s fastener production ability is keeping pace with the world.

At present, China is implementing the 30:60 development strategy, which means that carbon dioxide emissions will reach their peak by 2030 and China will achieve carbon neutralisation by 2060. Because of this, Chinese fastener enterprises are accelerating transformation and upgrading. The development is on the trend of clustering, high-end and intelligence, so as to achieve green, low carbon and sustainable development as soon as possible.

When it comes to clustering, China’s well known fastener production bases include Haiyan (Zhejiang), Yongnian (Hebei) and Dainan (Jiangsu). Fastener enterprises in the Greater Bay Area are also gathering 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 to be RMB 10 billion.

Regarding technology innovation, in addition to accelerating the research and development of special steel, China has gradually approached the advanced international level in terms of material selection, structural design, manufacturing process, special process, testing, surface coating and quality control. The integration of different subjects like mechanical manufacturing, information technology, and various high and new technologies, will continuously inject new vitality into the development of the fasteners industry in China.

With the implementation of energy conservation and emission reduction policies, and the increase of labour costs in China, Chinese enterprises are also speeding up intelligent production upgrades. A number of digital workshops, digital chemical plants and digital enterprises have emerged. For example, in order to improve the company’s digital transformation and expand production capacity, Zhejiang Tong Ming implemented the high-end stainless steel fastener digital chemical plant project, with a total investment of no less than RMB 350 million.

Looking forward to 2022, energy conservation, emission reduction and industrial upgrades are still the main focus of China’s fastener development. Chinese fastener enterprises will also face many challenges, but also opportunities. Within China there are always a number of excellent enterprises that emerge, leading the steady development of China’s fastener industry.

For example, Fastener Expo Shanghai has taken advantage of the trend to redefine the exhibition as a global high-end fastener industry innovation platform. It aims to link global high-quality resources and provide excellent opportunities for industrial upgrade, technical exchange and business development. The next edition will be grandly held in the National Convention and Exhibition Center (Shanghai) from 8th – 10th June 2022. At that time, visitors will be able to see the new heights of fastener development in China.