Forecast analysis of China's fastener industry from 2020 to 2024

Release time:

2020-12-08

Core tip: in 2019, China's total import and export of fasteners was 9.376 billion billion US dollars, down 4.39 percent year-on-year; the trade surplus was 3.698 billion billion US dollars, up 9.83 percent year-on-year, mainly due to the decline in imports far greater than the decline in exports. In 2019, China's total import of fasteners was 2.839 billion US dollars, and the total export was 6.537 billion US dollars.

Forecast analysis of China's fastener industry from 2020 to 2024

China Fastener Output Situation

The "2021-2025 China Fastener Industry Investment Analysis and Prospect Forecast Report" issued by the China Investment Industry Research Institute mentioned that with the rapid development of the metallurgical industry, machinery industry, and electronics industry, it has driven the global fastener products. The upgrading of the fastener industry and the continuous progress of the fastener industry. Since the beginning of the 21st century, the country's major cross-century projects-west-east gas transmission, south-to-north water diversion, high-speed railway and west-to-east power transmission-have been rolled out in an all-round way, and domestic automobile, machinery, home appliances, shipbuilding, transportation and other industries have continued to grow. strong production and construction demand has led to a substantial growth in the fastener industry. According to data released by the China Machinery General Parts Industry Association, from 2015 to 2019, my country's fastener production increased year by year. In 2019, the output reached about 8.5 million tons, an increase of 11.8 percent year-on-year.

Chart 2015-2019 China Fastener Production and Growth Rate.
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Data source: China Machinery General Parts Industry Association.

Automotive Fasteners Demand Space

In the automotive industry market, automotive-specific fasteners can be applied to almost every subsystem, such as: engines, wheel suspension systems, chassis systems, airbags, automatic anti-lock braking systems, etc.

China's automotive fastener product variety satisfaction rate has reached more than 60%, the domestic market satisfaction rate has reached more than 70%, the general low-grade product production capacity has greatly exceeded the market demand. As labor-intensive and raw material-intensive automotive fasteners, China is also increasing all aspects of technology research and development and equipment introduction.

The Investment Analysis and Prospect Forecast Report of China Fastener Industry from 2021 to 2025 released by CIC Industry Research Institute shows that the huge market in the automobile industry provides broad development space for automobile fastener products. Fasteners used in an automobile account for 40% of the total number of parts. For example, an average of 580 kinds, 50kg and 5000 pieces of fasteners are used in a light vehicle or car; on average, 90kg and 5710 pieces of fasteners are used in a medium truck or a heavy truck. If calculated at 75kg per vehicle, the market size of automotive fasteners will reach about 1.929 million tons in 2019.

Chart 2010-2019 China's automotive fastener market demand scale measurement.
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Data source: CIC Industrial Research Institute

China's total imports and exports of fasteners

The "2021-2025 China Fastener Industry Investment Analysis and Prospect Forecast Report" released by the China Investment Industry Research Institute shows that from 2015 to 2019, the total import and export volume and trade surplus of my country's fastener industry are on the rise. Among them, in 2019, China's total import and export of fasteners was US $9.376 billion billion, down 4.39 percent year-on-year; the trade surplus was US $3.698 billion billion, up 9.83 percent year-on-year, mainly due to the decline in imports far greater than the decline in exports. In 2019, China's total import of fasteners was 2.839 billion US dollars, and the total export was 6.537 billion US dollars.

Chart 2015-2019 China's total fastener import and export volume and trade balance.
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Data source: China Customs

New infrastructure brings new opportunities for fastener development

The "2021-2025 China Fastener Industry Investment Analysis and Prospect Forecast Report" released by the China Investment Industry Research Institute pointed out that in 2020, from the central intensive deployment to the capital market, "new infrastructure" officially stood on the wind.

Compared with traditional infrastructure, "new infrastructure" is based on high-tech infrastructure construction, including 5G infrastructure, ultra-high voltage, intercity high-speed railway and urban rail transit, new energy vehicle charging piles, big data centers, artificial intelligence, industrial Internet and other seven major areas.

On May 22, 2020, the 2020 State Council Government Work Report proposed to focus on supporting the construction of "two new ones" (new infrastructure construction, new urbanization construction, transportation, water conservancy and other major projects).

In the era of new infrastructure, equipment is increasingly demanding the performance of materials, especially in digital-based infrastructure networks. In this context, the new infrastructure of the "two new one" (new infrastructure construction, new urbanization construction, transportation, water conservancy and other major projects) is a new opportunity, high-strength fasteners have a lot to do.

(Source: CIC Advisors)