Jiaxing fasteners export in the first half of the year

In the first half of 2010, the total import and export of fasteners in Jiaxing City was US$352.77 million, which was a year-on-year increase of 34.1%, of which US$34.209 million was exported, which was a year-on-year increase of 50.9%, which was higher than the city’s total of 16%. Fastener exports accounted for the total exports of the city. The value of 4.7% represents an increase of 0.5% compared with the same period of last year.

First, the main features of the fastener exports in the first half of Jiaxing

1. Exports are still dominated by European and American markets, and exports to the BRIC countries are showing strong growth.
In the first half of the year, fastener exports to Europe and the United States amounted to US$137.96 million, accounting for 40.3% of total exports. Among them, 49.98 million U.S. dollars were exported to the European Union, accounting for 21.9% of the city's total exports, up 69.4% year-on-year; the U.S. exports were US$62.98 million, accounting for 18.4% of the city's total exports, up 2.18% year-on-year.
In the first half of the year, fasteners in Jiaxing showed strong growth in exports from Russia, Brazil, and the three major BRIC countries. Among them, 35.07 million US dollars were exported to Russia, an increase of 252.78% year-on-year; exports to Brazil were US$ 13.58 million, an increase of 258.48% year-on-year; exports to India were US$ 7.98 million, an increase of 169.38% year-on-year.

2. From the perspective of export entities, the proportion of export companies’ export accounts for a larger proportion.
In the first half of this year, 20 of the top 60 fastener manufacturers in Jiaxing were trading companies. In the first half of the year, the total export value of trading companies reached US$11.3 million, and exports accounted for 29.6% of the total fastener exports in the city, an increase of 3 percentage points year-on-year.

3. Exports are mainly steel fastener products, and general trade still dominates the export trade.
In the first half of the year, the export value of steel fasteners in Jiaxing reached US$34.021 million, an increase of 50.6% year-on-year, and exports accounted for 99.5% of the total fastener exports. Exports of fasteners to the general trade amounted to US$322.96 million, an increase of 51.7% year-on-year, and exports accounted for 94.4% of the total fastener exports of the city.

4, fasteners export product price increases.
In the first half of the year, Jiaxing exported 303,551 tons of fasteners, with an export value of 34.209 million US dollars and an average unit price of 1126.9 US dollars/ton, which was a drop of 2 percentage points from 1151.1 US dollars/ton in the same period of last year.

II. Factors Affecting Fastener Exports in Jiaxing City in the First Half of the Year

1. The global economy continues to pick up and promote the recovery of fastener exports.
The overall improvement of the international economy is the main external cause of the growth of imports and exports. In addition, foreign real estate, construction and other industries have recovered, and the inventory of foreign customers has been almost consumed. It is necessary to re-establish and replenish the inventory. This has won a lot for the company. Order.

2. The low export base last year laid the foundation for the rapid growth this year.
The financial crisis in 2009 has caused the fastener exports to plummet in the city. Starting this year, as the financial crisis gradually receded, the economy began to pick up quickly. Compared with 2009, the export of fasteners in the city has recovered significantly following the recovery of the global economy, but compared with 2008, exports have not yet fully recovered.

3. The BRIC countries have complementary trade advantages and strong growth.
China and India, Brazil, and Russia’s import and export commodities have mutual needs and complement each other. China's fastener products have great room for demand in these three countries. In particular, the fasteners exported to Russia in the city have, to a certain extent, filled the country's capacity gap. Thanks to this, the export of fasteners from the city to these three countries has grown strongly.

4. The reduction of raw material prices will reduce the company's costs.
In May and June of this year, Baosteel, Wuhan Iron and Steel, and Anshan Iron and Steel Company significantly reduced their ex-factory prices. Anshan Iron and Steel will cut its main product price in July by 400-1,000 yuan per ton. In June, the ring price of steel fell by 4.9%, which saved the company's production costs to a certain extent.

Third, the disadvantages facing the fastener exports in Jiaxing City

1. The reform of the RMB exchange rate increases the uncertainty of the company’s export. On June 19, since the reorganization of the exchange rate reform, the volatility of the RMB exchange rate in the spot market has increased significantly, and the uncertainty in the export of the company will be further expanded. In addition, the European debt crisis may also result in a substantial depreciation of the euro, resulting in an appreciation of the renminbi against the euro, thus affecting China's exports to the euro zone.

2. Imported products hit the domestic market. In the first half of this year, imports of high value-added fastener products from Japan and the European Union remained large. Due to the high technical content of imported fastener products, which fills the domestic market's demand for high-end leading-edge fastener products, it has also greatly impacted the confidence of fastener companies in Jiaxing in developing new products.

3. The export tax rebate for brass fasteners was cancelled to combat the production enthusiasm of the company. In July of this year, the state cancelled the export tax rebate for copper fasteners. The export of copper fasteners in Jiaxing City accounts for a very small proportion. Therefore, the cancellation of export tax rebates for copper fasteners will not result in a greater impact on fastener companies. Impact. However, enterprises are also worried that the cancellation of export tax rebates for copper fasteners is a precursor to the cancellation of export tax rebates for other fastener products, which will affect the company’s production enthusiasm to a certain extent.

Fourth, transformation and upgrading explore ways

1. Promote the transformation and upgrading of enterprises by improving marketing capabilities.

1 At the same time, both domestic and foreign sales will achieve full profitability. With anti-dumping intensifying, over-reliance on the sales channel of overseas distributors and a single sales market will create huge operational risks for companies. Export-oriented enterprises should actively explore the domestic market and transform into the domestic sales market.

2 Transfer export markets to avoid trade frictions. In 2008, the European Union decided to impose anti-dumping duties of up to 87% on carbon steel fastener products produced in China within five years, which puts the city’s fastener companies, which rely on the EU market, on facing severe pressures for survival. Companies should be aware that if you look at only a few areas, the losses you suffer when you encounter anti-dumping sanctions like the EU will be enormous. Therefore, developing new markets and shifting the export direction are another way out for companies to reduce the risk of trade frictions and realize corporate transformation and upgrading.

3 Integrate resources in the industrial chain, reduce risks, and ensure profits.

By integrating the relevant resources of the industrial chain, the company develops the market and enhances its ability to resist risks, which is another important choice for the transformation and upgrading of the company. For example, Jiaxing Brothers Standard Parts Co., Ltd. has started planning on the purchase of raw materials and the construction of logistics terminals. It is hoped that by stabilizing the raw material industry such as steel products, it will stabilize its business operations and strengthen its anti-risk capabilities; at the same time, it will reduce costs and increase profit growth through the construction of terminals.

2. Increase investment in product R&D and increase product added value.

1 Take the high-end product line and seek more profit. In order to increase the profitability of products and strengthen the right to speak in industry, fastener companies should quickly upgrade from producing low-value-added products to high-value-added products and from the low end of the industrial chain to the high-end of the industrial chain.
As we all know, Chinese fasteners exported to foreign countries are mostly low-end products with low added value. In the high-end markets such as automobiles, aviation, etc., few find Chinese fasteners. However, if our fastener companies have high-end, high value-added products, they will be able to better occupy a place in the fierce foreign market.

2 Relying on the construction of key national projects, strengthen product development efforts. The automotive industry, wind power construction, and high-speed railways are several major national engineering projects, and are also major earnings growth points for the development of fasteners in the future. Fastener companies should use this as an opportunity to nurture R&D fit products to open these high-margin markets.