China's High Class Standard Fastsners Continues to Rely on Imports

Fastener are the fundamental products for the machinery industry. As the machinery industry develops, it places higher requirements on fasteners. Currently the supply of China's standard fasteners has been more than demand, whereas the supply of high class fasteners (high temperature, shaped, titanium-plastic composite, special function) has been lower than demand and has to rely on export.  Accordingly, State Bureau of Machine Building Industry restricted the development of standard fasteners, and encouraged the development of high strength shaped fasteners. The usage of high strength fasteners increases as the nation progresses to higher level of industrialization and improved technology.

During the 12th Five Year Plan, possession of construction machinery like loaders, excavators, and rollers will reach 6 million units, and the annual sales will be around 50 thousand units. Based on these figures, annual demand for high strength fasteners will be 20 to 30 thousand tons. At the end of 2015, the total production of all industries will reach  7.5 to 8 million tons. In the trend of expansive exports, the volume of exported products will increase through ups and downs. During the 12th Five Year Plan the average export volume is estimated to growth by 8% to 10%. In 2015, the total export value of all industries will reach USD 30 billion.

China's fastener industry should look to the future. The national construction projects for high speed rail, aerospace, highway, and airport provides a chance to fastener companies. Boeing plans to add 3,400 planes in the future, and National Development and Reform Commission invests 800 billion dollars in building rail traffic between 6 cities. According to 36 rail traffic projects, by 2020 the additional mileage of the rail traffic will reach 6,560 kilometers, and the demand for rail fasteners will reach 5.5 to 7 billion dollars. These mega-projects will greatly boost the demand for high class fasteners like high strength fasteners and titanium alloy fasteners. Moving on from low class to high class is not impossible.