Jiaxing fastener export situation is worrying

In Jiaxing, Zhejiang Province, the fastener export situation in the first half of this year was not optimistic. In the first half of this year, the total import and export of fastener products was 452 million US dollars, a year-on-year decrease of 7.78%, of which exports were 441 million US dollars, a decrease of 21.43% year-on-year; Imports of 0.11 billion US dollars, a decrease of 27.97%.

The weakness of major export markets According to reports, in the first half of this year, Jiaxing fastener exports to the European Union, the United States, and Russia amounted to US$ 242 million, accounting for 54.87% of total exports. Of these, US exports accounted for US$ 97 million, accounting for 21.90% of total exports. The year-on-year decrease was 30.93%; the export to the EU was 79 million U.S. dollars, accounting for 17.97% of the total export value, a year-on-year decrease of 24.29%; the export to Russia was US$66 million, accounting for 15.04% of the total export value, a year-on-year decrease of 2.16%.

In the first half of the year, the export volume of most leading enterprises declined year-on-year. Eight fastener enterprises in the city exported more than US$10 million, which is a decrease of three compared with the same period of last year. Of these, seven of the eight companies exhibited year-on-year declines in their export levels, with the largest drop reaching 37.81%. .

At the same time, the quantity and price of fasteners' export products have been reduced. In the first half of the year, the number of fastener products exported from the city was 332,716 tons, which was a year-on-year decrease of 1.55%; the value of exports was US$441 million, a year-on-year decrease of 21.43%. The average unit price of fastener exports was US$1325.4/ton, down from US$1406.3/ton in the same period of last year. 5.8 percentage points.

In addition, general trade exports still dominate. It is reported that in the first half of the year, the export value of fastener products to the general trade was US$415 million, accounting for 94.01% of the total fastener exports of the city.

Severe trade friction situation According to reports, in 2010 the city’s fastener exports were US$708 million, a year-on-year increase of 51.8%; in 2011, exports were US$1.023 billion, a year-on-year increase of 30.9%; after double-digit growth, In response to the slow recovery of the global economy and sluggish external demand, the fastener exports of Jiaxing City experienced a negative growth in 2012. In 2012, the export value was 964 million US dollars, a year-on-year decrease of 5.79%. From January to June this year, the export value of fasteners in the city was even greater. It was a decrease of 21.43% year-on-year.

The trade friction situation is severe and the export resistance of enterprises has increased. In recent years, trade remedy investigations initiated by fastener companies in the European Union, the United States, and other countries and regions have pushed fastener companies in the city to the cusp of the crisis. Since 2004, the fastener industry has encountered more than a dozen trade remedy investigations from various countries and regions including the European Union, the United States, Canada, Mexico, and Russia, especially the European Commission’s fastener products in January 2009. The maximum anti-dumping tariff of 85% was imposed, causing nearly 1 million tons of Chinese fastener products to be exported to Europe.

In addition, the association analyzed that in recent years, due to the influence of raw materials, employment, environmental protection and exchange rate, the cost of enterprises has increased rapidly. The original export advantages of fasteners in Jiaxing have been greatly reduced.

In response, the association recommended that relevant companies accelerate the adjustment of product structure and vigorously develop high-performance, high-intensity, and high-value-added products. Enterprises should closely rely on opportunities for the development of industries such as automobiles, new energy, high-speed rail, aerospace, and IT to speed up the transformation and upgrading, continuously improve the quality of products, give full play to their innovative capabilities, and create new competitive advantages.

At the same time, efforts should be made to expand the market and achieve both domestic and foreign sales. The association warned that with frequent trade frictions, the fastener companies in Jiaxing should have enough understanding and the risk of single export is high. Enterprises should achieve both internal and external sales and disperse trade risks. Export companies must achieve market diversification and consolidate traditions. At the same time, the export market continues to develop emerging markets such as South America, the Middle East, and ASEAN.

In addition, it is also necessary to innovate marketing models to broaden sales channels. As a traditional industry, fasteners must integrate with the new economy, new technologies, and the Internet to develop e-commerce and take advantage of new ways of using online trading platforms to explore the development model of e-commerce + professional companies + small manufacturing.