6/14/2011 12:05:00 AM
HEADLINES
Strong Demand in Asia Driving Manufacturing Costs Up
Asian fastener market conditions vary by country.
In Taiwan, steel is rising, the dollar is weak, Northern Africa is in civil war and Europe is unsure where to buy, according to Porteous Fastener Co. vice president Bruce Darling. While in China, steel and labor prices are up amid lackluster plant expansion, Fastener + Fixing magazine reports.
“In Taiwan business in 2010 was better than 2009,” Darling told the Pacific West Fastener Association. “If 2011 does not pick up, there will be fall out.”
“The latest round of steel prices—at 9.3%—was significant and already there is talk of larger increases to come,” Darling said.
Equipment expansion in Taiwan is limited to replacing old equipment.
Taiwan is also benefiting from Europe’s antidumping duties on Chinese fasteners, though the World Trade Organization has ruled against the tariffs.
“If removed, the volume will go back to China,” Darling explained. Darling predicted higher prices from Taiwan in the next quarter and the following quarter could climb higher.
In China “all the indicators point to higher prices,” Darling said, noting flooding in Australia and Brazil that hiked iron ore contracts.
“There are rumors that steel will increase 66% in 2011,” Daring reported. “However, we see price increase in the 10% to 15% range for the immediate future, with another 5% to 8% for the remainder of the year.” ©2011 GlobalFastenerNews.com
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