Taiwan Fastener Exports Jump 10% in 2004

John Wolz

Taiwanese suppliers of large industrial fasteners saw orders grow by an average of 20% during the second quarter of 2004, Taiwan Economic News reported.\ However, suppliers of small fasteners lost 30% of their business to Chinese rivals during Q2.
Taiwan Industrial Fasteners Institute chairman John Wu attributed the lost business to China”s economic measures to slow its overheated economy. The large-fastener gain was caused by steel price surges that prompted European and American suppliers to seek outsourcing suppliers in Asia, Wu noted.
The Economic News added that China”s control measures have slowed its consumption of steel and other raw materials, giving domestic fastener suppliers a boost by allowing them to cut production costs with cheaper steel.
Tycoon Group Enterprise Co. vice president S.H. Lin said China”s economic controls caused Chinese wire rod prices to drop at least 30% to NT$17,000 (US$500) per metric ton, compared with NT$23,000 per metric ton quoted in Taiwan. This helped China suppliers quote their products 20% below Taiwan prices. However, Lin predicted most of that business will return to Taiwan when China”s steel price controls are lifted.
TIFI statistics showed that overall Taiwan fastener exports increased 10% in the first eight months of 2004, with heavy-duty bolts and nuts comprising 70% of the export. Wu pointed out that Taiwan export prices surged 20% to US$1,600 per metric ton. �2004 FastenerNews.com