Profits Increase for San Shing Fastech, Rodex Fasteners and New Best Wire

John Wolz

Editor�s Note: The following column is presented by Taiwan-based Fastener World magazine as part of a news column exchange with FIN/FastenerNews.com.�
OTC (over the counter) steel plants posted profits in April. Recent falling steel prices had little impact on overall profitability. In terms of EPS (earning per share) for the first four months, Rodex Fasteners Corp. ranks highest among all OTC steel mills. New Best Wire Industrial Company Ltd. and San Shing Fastech Corp. also reported profit increases.
Rodex Fasteners received orders beyond July, ensuring second quarter profits. Judging by order prices taken so far, Q2 profits should surpass Q1, with quarterly net profit-per-share after tax expected to surpass the $0.70 mark of the first quarter. In addition, Rodex Fasteners� production plant in Taiwan is producing 800 metric tons of stainless steel screws per year, and its plant in Thailand makes 350 metric tons. Strong sales have the company evaluating an expansion plan for a second production plant in Taiwan.
New Best Wire successfully completed a trial run in April of their new production line for electrolytic polished stainless steel tubes. Mass production started in June, with an initial output of 3,000 meters per month. New Best Wire estimates the new item will contribute $5.6 million to company revenue this year, adding $0.80 to annual EPS.
San Shing Fastech indicates that steady orders from such U.S. buyers as GM, Ford and Chrysler, along with improving OEM fastener orders and increased demand from Japan, are driving nut orders for the third quarter. Currently, San Shing Fastech is receiving orders for August and September.
China Steel concludes steel pricing conference
China Steel Corp. hosted a manufacturer and wholesaler conference on steel pricing for local sales in the third quarter. Conference participants decided to leave Q3 prices unchanged for most local steel products, despite indications that prices would rise. Exceptions to the price freeze are electromagnetic steel plates, materials for computer chassis, and cold rolled steel.
Demand for steel and iron in Asia, particularly high-grade steel for the automobile, home appliance, electronics, and ship building industries, exceeded supply, prompting Japanese steel plants to increase prices for the third quarter. In China, steel prices continue to rise with no sign of weakness, despite surging imports, shortages, inventory overload and SARS. Demand for more high-quality steel than Chinese plants can deliver has prompted the increase.
China steel prices have risen following a brief decline. Imports from Russia and the impact of SARS had driven steel prices lower on the Chinese market.
Formosa Group evaluates building steel plant
Taiwan consumes 18 million metric tons of steel wire each year, with China Steel Corp. producing 10 million metric tons a year. In light of this, the Formosa Group is pondering a plan to build a blast furnace capable of producing 1.8 million metric tons per year near Taichung Harbor. China would be the primary market for Formosa steel. \ �2003 FastenerNews.com