Talking about the price increase of fastener raw materials

The soaring raw materials and overcapacity of fasteners and other basic components will fall on the fastener raw material industry. Looking back at the development of the fastener industry, we can find a regular phenomenon. Whenever there is a strong sales in the market, product saturation will inevitably follow. Then there will be macro-control and compression, followed by a short supply period, and the manufacturers will again have a large capacity. , so the product is once again saturated, so again and again.

Analysis of the reasons for the recent steady increase in the price of raw materials are mainly as follows: 1. Control of the iron and steel industry production capacity tends to ease supply and demand, the country strengthens the macro-control of the steel industry, and the steel market has a rank development. 2. The decrease in steel imports and the increase in exports are conducive to stabilizing prices. 3, market confidence has been restored, operators and production customers are optimistic about market demand, 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.

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, 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%. It will still rise 10%.

Xiao Bian believes that with good technology, we can better expand market resources. Good technology is a prerequisite for a broad market.