Fastener industry is dependent on raw materials industry, raw material prices will naturally increase the cost of fastener production. In the current situation, the fastener enterprises should be timely adjustment of product structure, control the scale of investment, the compression of non productive expenditure, which is also of positive significance.

It is not difficult to see that, different enterprises in different situation, product marketable enterprise present ability is insufficient, and the product is not accepted business, indeed as excess capacity. Within an enterprise, with products in short supply, also have product sales are sluggish.

      Therefore, the fastener production capacity can not lump together, generally said that excess capacity still but left are biased, the survival of the fittest, bring forth the new through the old, is the symbol of the healthy development of the industry.

      In recent years, fasteners overcapacity and soaring raw materials, also fell in the fastener industry head. Everyone said the capacity is mainly refers to the general standard parts (less than 8.8 fasteners) to limit the development of. Review the course that the fastener industry, can find a regular phenomenon, is that whenever the market popular, followed by the inevitable product saturation, then is the macroeconomic regulation and control and the compression, then a round of short supply, manufacturers to capacity, then the product again appeared saturated, so go round and begin again, the fastener industry in recent 20 years to be so.

      And the excess production capacity, product saturation is accompanied by cold heading steel wire rod continued high, in fact, raw materials to influence international environment, since 2004, the global iron ore prices rose step by step, 2005, iron ore prices rose by 71.5%, this year is expected to rise 10%, is now often used in cold heading steel swrch35k rose to 3900~4400 yuan per ton carbon steel, 45# also rose to 3400~3800 yuan per ton, rose 500~800 million tons last month.

      Analysis of the recent raw material prices steady rise of the main reasons are: first, the relationship between supply and demand tends to ease the steel industry production capacity of countries to strengthen macro-control, iron and steel industry, iron and steel market orderly development. Secondly, steel imports fell and exports increase, is conducive to price stabilization. Once again, the market confidence has the restoration, operators and production customers on the optimistic about the market demand, to purchase and positions.

In addition, the fastener industry to save material costs, will provide the technical inputs, with good technique can also open up the broad market resources for their.