News Article :: USA - Price of fasteners imported from Asia continue to escalate
Date : Jan 25, 2008
Prices of fasteners from China and Taiwan skyrocketed during 2007 and importers predict prices will continue to escalate in 2008. And fastener importers
are advising distributors to “buy now.”
The 1/2x4 hex bolt was up 9% FOB between January 2007 and mid-June. Then China cut the export rebate to its fastener manufacturers from 13% to 5% on July 1, 2007. By September the 1/2x4 hex bolt was up 21% for the year. By the end of the 2007 the hex bolt price was up 33.6% over late 2006.
A sampling of prices offered by manufacturers from China and Taiwan showed increases during 2007 of 33.3% to 51% (see chart).
Marty Schneider, president of Continental-Aero, reported prices rose 13% during 2007 for 1/4-20 nylon inserts from Taiwan. “The larger sizes are higher
increases,” Schneider added.
Importers predict prices will continue to rise in the coming months. There was talk of China dropping its remaining 5% rebate in September and again there was speculation that it would happen with the beginning of 2008. “It hasn’t moved yet,” Bruce Darling of Porteous Fastener Company said with emphasis on the “yet.”
Taiwan’s China Steel Corporation announced wire rod price increases during autumn, and another price hike is anticipated for February 21, 2008. The smaller
independent steel suppliers are changing their prices “every week,” Darling said.
China Steel is changing its allocation policy, moving to higher-value steel. “They are walking away from low carbon steel,” Darling explained.
The weak U.S. dollar also is driving up prices.
This is an excerpt from Fastener Industry News, January 10, 2008
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