Emerging Fastener Markets Magazine No.12

Is Requiring Extra Overseas Plants on Taiwanese Fastener Owners Truly Necessary?

First and Foremost is to Pinpoint Impact Range and Gain Buyers’ Confidence

Are You Tensed up About the Taiwan Strait Tension?

In our interaction with fastener associations, business owners and global exhibitors, we observed that a number of overseas buyers are worried about one thing: "If there is a war in the Taiwan Strait, will the supply chain of Taiwan fasteners be cut off?". These buyers are beginning to hope for Taiwanese owners to establish factories in Southeast Asia or other regions (which forms the concept dubbed as "Taiwan +1", where the plus mark denotes “extra” and “+1” denotes “an extra location”). They expect Taiwanese owners to build production lines in other countries to avoid disrupted supply chains.

The Russian-Ukrainian war has lasted for more than 500 days, leading to global inflation, rising interest rates, soaring prices and public inconvenience. The Global Misery Index pushed up by this war has been deeply felt by everyone. If China starts a war against Taiwan, the index will undoubtedly exceed that of the Russian-Ukrainian war by several times, and it will

lead to global chaos. Undeniably, the tension between Taiwan and China is largely influenced by the rivalry and friction between the United States and China, which indirectly leads to the need for Taiwan to make policy choices. China's military and political moves have undisputably added up to the heating up of the "+1" trend. Nevertheless, it is worth clarifying whether this trend affects Taiwan fastener industry. Therefore, this article will share our experiences and food for thought through the following different perspectives.

Taiwan Has No Intention and Prerequisites to Provoke China

Taiwan has never wanted a war, nor will it initiate one. Taiwan's status quo is influenced by geopolitics and historical burdens. The people of Taiwan know in their hearts that they do not want to go to war to achieve some kind of goals.

Taiwan has had a very close relationship with China. Over the past 30 years, Taiwan has invested more than US$200 billion in

China, and more than 10,000 Taiwanese companies have set up factories in China. There are more than 100 Taiwanese fastener companies operating in China. According to Taiwan’s Ministry of Finance, Taiwan's exports in 2021 reached a record high of about US$446.4 billion, of which 42% (US$187.4 billion) were exported to China, and the trade surplus for Taiwan was nearly US$60 billion, which shows quite a large China's economic contribution to Taiwan.

There are more than 500,000 Taiwanese people working in China and more than 10,000 Chinese people working and studying in Taiwan. According to Taiwanese government’s statistics, there are more than 100,000 registrations of transnational marriage between Taiwanese and Chinese people, so a war would only result in the separation of family and bitterness on both sides of the Taiwan Strait. There is complicated sentiment between Taiwan and China, and the economic development they have built together has been very successful, so Taiwan will not make up a reason to go to war. Leaders on both sides of the Taiwan Strait should have the wisdom to choose a way of life that is mutually acceptable and allows for coexistence, rather than destroy decades of development on the spur of the moment.

The Price of War is High

If China were to attack Taiwan, it would first have to face the world's largest maritime war in history. The Taiwan Strait separating the two sides is 77 to 140 kilometers wide, and for those with a military background, it is not difficult to understand the difficulty of such a landing operation. According to official figures, Taiwan currently has 700,000 reservists who can respond immediately in the event of a war. Taiwan has also acquired many fine weapons through the supply of semiconductors and procurement of military weapons, and it is believed that Taiwan has enough power to defend itself. As a saying goes, the winner takes the throne as the king (a hero in history) and the loser rots in the river of history. Many overseas experts have warned of the risks and consequences of a crossstrait war. In the event of a war, Taiwan and China's respective economies would be destroyed, and it would take decades to rebuild. Who can afford such a heavy burden?

If There is a War Across the Taiwan Strait, Will it Affect the Development of Fastener Industry?

Which Part of Taiwan Fasteners is Replaceable and Which Part is Not?

The global fastener production and sales market size is US$85 billion (20 million tons of fasteners produced), of which Taiwan's size is about US$5 billion (1.5 million tons). Compared to Taiwan's semiconductors which take up 90% of global market share, Taiwan's share of fasteners in the global market is relatively small. Taiwan's fasteners fall in the middle of the price range on average, and in the event of a war, it would not be difficult to find other countries to buy the same level of products as Taiwan. However, it is necessary to point out that, although Taiwan fasteners can be replaced in terms of price, Taiwan’s R&D capability, production management, credibility, its supply chain which is the most complete in the world, as well as high value-added products and service satisfaction, are Taiwan's unique and irreplaceable features.

Fasteners are Not a Critical Tactical Asset

Fasteners are not an extremely critical and tactical material like semiconductors. If a war breaks out, the possibility of Taiwanese fastener factories being attacked is not high. Taiwan already has experience in establishing a complete supply chain; in addition, many Taiwanese fastener companies have set up bases overseas which have the ability to supply goods, so even if there is a war, they can quickly resume production of fasteners. On the whole, if there is a war, it won’t amount to a nuclear level of destruction on Taiwanese fasteners, and it is less likely to cause a major global panic and a major shortage of goods.

Taiwan's Fastener Trend Line Remains Unaffected

Taiwan's political ground, economic development and social security are very stable. For the past three years this had never been affected by war concerns and COVID. Even in the past 20 years, Taiwan's fastener exports have shown a 20-degree upward trend line (see Figures 1 and 2), which will only be subject to the global economic climate, but not to political and war factors.

Fig. 1. Taiwan’s Global Fastener Export Value in the Past 20 Years

Fig. 2. Taiwan’s Global Fastener Export Volume in the Past 20 Years

Will Adding Overseas Locations Necessarily Translate to Lower Price Offer?

It is undeniable that some of the Taiwanese owners have cooperated with buyers' requests by going to Vietnam, Thailand, Indonesia, Malaysia or other places to build factories in order to diversify the risk. However, Taiwan fastener industry mostly consists of small and medium-sized enterprises (SMEs) which don’t have a high level of manpower, material resources and capital. The global fastener market lately is not as good as expected, and this comes with the upcoming carbon tax and costs for environmental protection, so going overseas to set up factories would mean a lot of pressure. In fact, as far as the current situation, the cost of setting up production lines in other countries is no less than the cost of production in Taiwan,

In the Face of Asia-Pacific Tensions, We Need Everyone on Board to Have More Confidence in Taiwanese Fasteners

After clarifying the scope of impact of Taiwan Strait tensions on Taiwan fastener industry, we believe that buyers don't necessarily need to ask Taiwanese owners to keep up with the "+1" trend because, as already mentioned, doing so won't necessarily lead to better pricing for buyers. That said, it is not unreasonable for buyers to be concerned, and this underscores many ways in which Taiwanese companies must make buyers feel more confident in the safety, stability and strength of Taiwan's fastener supply. As a medium for communication, Fastener World Magazine takes the responsibility to analyze the scope of impact for suppliers and buyers, hoping to open up more room for communication.

We believe buyers who have visited Taiwan would feel that there is no war atmosphere in Taiwan. What's more, the New Taiwan Dollar and the US Dollar have become two of the world's most appreciated currencies. The price of land in Taiwan has tripled, and there has been no surge of emigration. In addition,

Emerging Fastener Markets News

Industry Development

Indian Steelmakers May Be Mandated to Use Partial Capacity for Green Steel Manufacturing

印度鋼鐵企業可能被強制將部分產能用於生產綠色鋼鐵

全球新興 市場新聞

compiled by Fastener World

Green steel refers to the production of steel without relying on any fossil fuels. Union Steel Minister Jyotiraditya Scindia hinted that the Indian government may make it mandatory for steelmakers to devote a part of their capacity to green steel manufacturing in the future. The government may also look at ways to ensure greater usage of the green steel in government projects as well, he added. Scindia said the private sector steel users in India are actually moving towards committing to more and more green steel in their projects and also noted that some manufacturers have already launched branded green steel products. The minister said breakthrough technologies and disruptive innovations like hydrogen-based steelmaking coupled with carbon capture, utilisation and store (CCUS) hold huge promise for the future.

He said India has emerged as the epicentre for the evolution and growth of the steel sector globally and has been able to achieve landmarks like production touching 125 million tonnes and consumption growing over 11 percent in the last nine years. In 2022, even as the global finished steel production declined by 4.2 percent, India could post a 6 percent growth, he said, adding that the per capita steel consumption has now increased to 78 kgs from 57 kgs in 2014.

The overall growth has made investors interested in the sector, and the government in March signed 57 pacts with 27 companies under the production-linked incentive (PLI) scheme, which will add 25 million tonnes to the steel capacity, he said. The capacity addition will see investments of Rs 30,000 crore and also create 60,000 jobs, he added.

India Intends to Appeal Against CBAM Through WTO

印度不滿CBAM課碳稅 打算狀告WTO

The European Union aims to become a climateneutral economy by 2050, ahead of India’s target of 2070. Senior Indian government officials and industry sources have revealed that the EU is proposing to impose tariffs of 20 to 35 percent on high-carbon emission goods such as steel, ore and cement imported from India, for which India intends to file a complaint with the World Trade Organization.

“The EU is erecting high trade barriers in the name of environmental protection to hit exports from India and many other developing countries,” said a senior Indian government official. India intends to sue EU through WTO and seek relief for exporters, especially vulnerable small businesses.

Another government official involved in WTO affairs said India considers EU’s proposed carbon tax as discriminatory and tantamount to a trade barrier, and mentioned that New Delhi will abide by the UN’s Paris climate agreement, questioning the legality of EU’s carbon tax. Ajay Sahai, director general of the Federation of Indian Export Organizations (FIEO), said steel and small manufacturers need more time to meet the EU standards, and that these industries will eventually have to reduce emissions to remain globally competitive.

FIEO also warned that free trade agreements between India and other countries, as well as trade agreements developed by the European Union, may be impacted by CBAM and become “all for nothing,” because the carbon tax will increase the price of many exports by nearly one-fifth, and trading partners hit by the carbon tax may dump their goods into India.

Thai Exporters Look for Opportunities in New Green Trade Rules

泰國出口商盼在新的綠色貿易規則中尋找機會

New global trade rules to reduce climate change may create an opportunity for Thai entrepreneurs to align with global trends, according to Keerati Rushchano, permanent secretary at the Ministry of Commerce of Thailand, who attended the “Innovation Keeping the World” seminar in Bangkok on June 7.

Environmental trade regulations now play an important role in global trade due to the impact of climate change, but Thai entrepreneurs should not panic or fear because the Thai Ministry of Commerce and relevant authorities are ready to help businesses cope with the new rules. The main risk for Thai exporters is not to take the upcoming environmental trade regulations of other countries seriously.

Many countries or regions are currently implementing environmental trade regulations, such as the European Union, the United States and Australia. The EU’s Carbon Border Adjustment Mechanism (CBAM) will impose taxes on carbonintensive imports from January 1, 2026.

Thai entrepreneurs can prepare for environmental trade regulations by (1) using innovative methods and technologies in their production processes that comply with the new global trade regulations; (2) preparing data such as carbon footprint assessments, source of materials and operation traceability to demonstrate compliance with the new environmental regulations; and (3) using compliance with the new environmental regulations to attract new consumers.

Vietnam to Start Construction of 5 Major Transportation Projects by the End of 2023

Uong Viet Dung, Director of the Office of the Ministry of Transportation of Vietnam, said on July 10, 2023 at a meeting on the Ministry’s first-half results and second-half work plan, that by the end of this year, the ministry will start five major transportation projects, including the crossroads connecting Cho Chu and Trung Son, a road connecting Rach Soi and Ben Nhat, a road connecting Go Giao and Vinh Thuan, an expressway connecting Hoa Lien and Tuy Loan, and Dai Ngai Bridge, which pass through the roads of Ho Chi Minh City.

Director Uong said that in the first half of the year, the ministry has completed and started operating a number of major transportation projects to meet the demand for usage, including the expressway connecting Phan Thiet to Dau Giay, Vinh Hao to Phan Thiet, and Nha Trang to Cam Lam. In addition, the upgrade of the railroads from Hanoi to Vinh City and from Vinh City to Nha Trang City has been completed.

Vietnam Faces the Largest Impact from Imports of China-made Steel

中國低價鋼鐵入侵，越南成最大受災戶

Recently, China has entered the market with a large amount of low-priced steel. In response to China’s price cutting competition, Formosa Ha Tinh Steel Corporation (FHS) in Vietnam intended to lower its domestic order price in July by another US$50 to US$70 per metric ton for hot rolled and wire products, and US$20 to US$30 per metric ton for wire.

China has produced an excessive amount of steel, so it is turning to the Southeast Asian market, especially Vietnam with emerging electronic, industrial and OEM markets. A major Chinese northeastern company’s low-carbon wire price fell 40 to 50 U.S. dollars per metric ton compared to the previous month, landing at just 620 to 630 U.S. dollars, a very low price range.

Due to the continuous price cuts by Chinese steelmakers, FHS has reduced its domestic product prices several times from May to June, including a US$20 cut for wire in May and another US$15 cut in June to cope with the risk of being challenged by Chinese steel.

In response to FHS’ price cuts, Taiwan CSC said it is not affected for the time being, but will continue to tap into refined steel to reduce the impact. Imported steel from China is only about 600 U.S. dollars per metric ton, which is much lower than Vietnam’s price of 680 to 690 U.S. dollars, so Vietnamese steel is subject to competitive pressure.

U.S. Imposes 200% Tariff on Russian Aluminum 美對俄鋁徵收200％關稅

Aluminum is often used in fuselage, bolts and window & door frames. In a thorough effort to combat Russian circumvention of sanctions, U.S. White House announced a 200% tariff on Russian aluminum and related aluminum products, which has been effective since March 10. Russian aluminum accounts for about 1/10 of U.S. imports, and buyers range from the automotive to construction industries. The White House said it is planning to extend the sanctions to Russian metals and mining industries, but the move must be carefully planned to minimize the impact on the market.

New Zealand Subsidizes "Green Electricity Steelmaking", Equivalent to Reducing Carbon Emission of 300,000 Cars

On May 21st, 2023, New Zealand announced the implementation of the largest carbon reduction program in the country's history. The government will spend US$140 million to subsidize the steel giant NZ Steel, which expects the steel mill in Glenbrook to switch from coal-based steelmaking to renewable electricity, a policy that the government says is equivalent to cutting carbon emissions from 300,000 running cars. "The grant program demonstrates the importance the New Zealand Government places on reducing carbon emissions as quickly as possible, and working with NZ Steel on this program will have significant environmental benefits and accelerate New Zealand's decarbonization process. This partnership is only possible because of government funding," said Prime Minister Higgins. The New Zealand government mentioned that the US$140 million subsidy to Steel New Zealand was drawn from the Government's Carbon Reduction and Transformation Industry Fund (GIDI). With a total amount of US$650 million, GIDI not only assists New Zealand's R&D in carbon reduction technology, but also works with industry and government to reduce carbon emissions and accelerate the establishment of a zero-carbon energy system. If this carbon reduction program runs smoothly, it is estimated that New Zealand's carbon emissions will be reduced by 800,000 tons per year, which is equivalent to removing the carbon emissions of all cars in Christchurch, the largest city in New Zealand's South Island. NZ Steel accounts for 2% of New Zealand's annual greenhouse gas emissions. However, once this decarbonization program is achieved, it will reduce New Zealand's total carbon dioxide emissions by 1%, help New Zealand achieve its Net Zero goal by 2050, and move towards the vision of "limiting global warming to 1.5 degrees Celsius". Climate Change Minister James Shaw believes the program will help the government reduce its carbon tax bill in the long term, saying, "This program will reduce New Zealand's carbon emissions by about 5.3% in the second phase of the carbon budget from 2026 to 2030, and by about 3.4% in the third phase of the carbon budget from 2031 to 2035."

Malaysian Government Develops Strategic Roadmap to Accelerate Energy Transformation

馬來西亞政府刻正制定策略路線圖，以加速能源轉型計畫

Malaysia has revised its Nationally Determined Contribution (NDC) to reduce greenhouse gases by 45% by 2030, Prime Minister Anwar Ibrahim said in his keynote speech at the Asian Energy Congress 2023. The country's efforts to realize the NDC have been incorporated into the 12th Malaysia Plan (12MP) and the National Energy Policy 2022-2040 (NEP 2040).

The Malaysian government is in the process of developing several strategic roadmaps, including the National Energy Transformation Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap. The most important of these is the National Energy Transformation Roadmap, which will be supported by the hydrogen economy and the Technology Roadmap and will pave the way for Malaysia to achieve environmental sustainability and long-term energy security through technological innovation. Both roadmaps are expected to be launched in the second half of 2023.

Meanwhile, Malaysia continues to recognize that natural gas plays an important role in the energy mix and is one of the cleanest hydrocarbons for the transition to a low-carbon economy. At the same time, the Malaysian government is committed to joining the Global Methane Pledge to reduce methane emissions by 30% by 2030.

Not just the Next China! India to Become a Superpower Economy According to Research

Due to the U.S.-China technology war that continues to promote India's position in the international market, the U.S. research institute Riedel pointed out that India is not the new China, and that it will be in accordance with its own rhythm and pace forward. The institute is optimistic that India will be able to achieve high growth as a super emerging power. CNBC reported that David Riedel, CEO of Riedel, prefers and is very optimistic about India over China because the Indian economy is much larger than China's. In addition, he believes that India's economy is likely to exceed expectations over the next six months to two years, and he emphasized that "India, whether in the past or the future, is a very different country from China".

However, India also has some problems to solve. India's economy has long been stagnant in the middle-income level, and has not yet entered the ranks of high-income countries, but David Riedel believes that India will have the opportunity to achieve higher economic growth than expected in the future. On the other hand, the economic outlook for China is a little bleaker. David Riedel predicts that China will not be as strong in the next five years as it has been in the past five years, as more and more foreign companies decide to move their supply chains and factories out of the country, resulting in more and more young people being unemployed in China, with the unemployment rate of young people between the ages of 16 and 24 climbing to a record high of 20.8% in May, according to statistics. In addition, China recently released a series of lower-than-expected economic data, from which we can see that its economic growth trend is gradually slowing down. In addition, China's factory activity has been in contraction for the third consecutive month. China's manufacturing PMI (Purchasing Managers' Index) was 49 in June and nonmanufacturing PMI was 53.2, both a record low this year.

Aerospace Fasteners Market to Garner US$11.31 Billion by 2030

The Brainy Insights predicts the global aerospace fastener market is to grow from USD 6.17 billion in 2021 to USD 11.31 billion by 2030, at a CAGR of 6.96% during the forecast period 2022-2030. The increasing aircraft modernization projects in various nations and growing passenger willingness to fly by air are anticipated to boost demand for aerospace fasteners. Moreover, the growing import & export operations have resulted in higher air traffic, and the adoption of 3D & robotics technology supports the market’s growth during the forecast period. Further, the increase in demand for aerospace fasteners for defense systems in military helicopters and fighter jets is also anticipated to boost the growth of the aerospace fastener market.

Structural Wood Screws Market to Hit US$7.5 Billion by 2032

The structural wood screws market is expected to cross a valuation of USD 7.5 billion by 2032, according to the latest research report by Global Market Insights Inc. The industry growth is driven by the increasing demand for these screws in construction and home improvement projects. Expansion of the construction industry has led to the extensive usage of these screws for framing, decking, and other structural applications. Additionally, the growing popularity of DIY projects among homeowners is likely to support the business expansion. As more and more people are taking up DIY projects to save money and customize their homes, the demand for these screws is expected to increase further. The carbon steel structural wood screws market is set to gain immense traction from 2023 to 2032 owing to the robust expansion of the building sector in emerging nations and growing public awareness of the advantages of utilizing high-quality building materials. Carbon steel screws are ideal for use in building projects due to their high tensile durability and sturdiness. Additionally, they are less prone to corrosion and rust, which increases their lifetime, and contributes to their higher acceptance rate. The structural wood screws market has been steadily growing from the furniture and crafts application segment as more manufacturers and DIY enthusiasts use these screws in their projects. One of the primary benefits of structural wood screws is their capacity to withstand heavy weights, which makes them ideal for use in furniture where weight and pressure are a concern. Structural wood screws are used in the arts and crafts business to make a range of things, including picture frames and birdhouses, which are likely to foster segment growth through 2032. The structural wood screws industry in Europe is set to register significant growth through 2032 as more constructions are opting for wood-based structures. With the increasing focus on reducing carbon footprints, there is a growing preference for wooden structures over concrete and steel. Moreover, as the demand for wooden structures continues to grow, the regional market is set to record substantial development through 2032.

結構性木螺絲市場到2032年將達到75億美元規模

Companies Development

Sheh Fung Screws Expands Sales to the Auto Fastener Supply Chain

世豐打入車用扣件 越南廠明年首期貢獻6億 台幣營收

Sheh Fung Screws reported good news that it shipped a small amount of car seat fasteners to Chrysler this June. It is also developing battery module fasteners. In addition, new product sales achieved good results with the cumulative order value reaching 70 million NTD from last October to this June. Its Vietnam plant will be completed at the end of this year, which is expected to start manufacturing standard products in Q1 2024 and sell to Europe, and the initial production capacity will be 600-800 tons per month, which is estimated to contribute NTD 600 million to Sheh Fung’s revenue a year.

Sheh Fung General Manager Kent Chen said that Taiwan’s fastener prices have gone down last year because of lower raw material prices. The beginning of this year saw a little raise, but the recent market showed the prices were down again. Customers will certainly wait and see, but he believes that the steel market has almost reached the low point. The prices could go lower but not too much. The third quarter of this year is the bottom; the fourth quarter can be better than the third quarter. On the other hand, Sheh Kai Precision, a major manufacturer of composite screws, has benefited from the promotion of the solar industry by various countries this year, and orders for self-drilling screws are visible through the end of the year.

Sheh Kai Precision believes that the uptrend will last at least for 2-3 years and has expanded its production capacity to 7 million pieces per month, aiming to raise it to 15 million pieces. Due to limited space at Sheh Kai Precision’s plant, Kent Chen said he could rent the land of Sheh Fung Screws in Vietnam, and the two companies will combine resources of each other.

Bulten Enters into Agreement to Acquire Exim & Mfr Holdings Pte Ltd. Bulten 將併購新加坡Exim & Mfr Holdings Pte Ltd.

Bulten has entered into an agreement to acquire all shares in Exim & Mfr Holdings Pte Ltd “Exim”, an Asian, Singapore-based distributor of fasteners and other components, for a purchase sum of approximately SGD 66.3 million (SEK 530 million) on a cash-free and debt-free basis. The acquisition affords Bulten a good platform to grow in new sectors, where the distribution stage is a pivotal sales channel.

The acquisition is expected to contribute to Bulten’s development and earnings, and to increase earnings per share. Exim gives Bulten access to a large, broad customer base in growth sectors in a dynamic region. The acquisition is an important part of Bulten’s strategy, which aims for growth outside of the company’s primary customer group of automotive, and to improve risk diversification, as well as margins.

Anders Nyström, President and CEO of Bulten Group, comments: “Our strategy sets out a clear focus on balancing our sales through growth in customer groups beyond the automotive industry. The aim is for these to account for at least 20% of sales by 2025. The acquisition of Exim takes us into the distribution stage, which is a key to profitable growth in new sectors. Exim is a well-managed company with an international customer base and developed processes for distribution and Vendor Managed Inventory (VMI), which is suitable for industries with completely different purchasing patterns than Bulten has historically been used to.

Exim’s base in Singapore is also highly attractive. It enables us to take advantage of the strong growth in that region, and we also see potential in using Exim’s sales network to increase sales for our factories in China and Taiwan. Exim will, together with Bulten’s rapidly growing business to consumer electronics customers, constitute the beginning of a new industrial segment.”

New Best Wire Industrial Strengthens Overseas Presence and Implements Carbon Reduction

強新工業強化海外布局東協與印度、落實減碳

New Best Wire Industrial is a major wire rod manufacturer and is optimistic about the future economic development of ASEAN. In recent years, they have set up a factory in Vietnam and focused on the development in the ASEAN and Indian markets, to take advantage of multiple production locations and regional complementary strategies to reserve operational momentum. As for the future outlook, they pointed out that the economy turned around in the fourth quarter of last year and they are not optimistic about the first half of this year. Unit price and market demand are slowing down so they are taking conservative actions, but they have high hopes for Vietnam and ASEAN and are not ceasing overseas investment. Currently, they have acquired 66,116 square meters of land for its Vietnam plant, with the current capacity of about 1,000 tons per month. After completing the construction of the STC furnace, they will reach 5,000 tons per month by 2025. They are actively pursuing business opportunities in the ASEAN and Indian markets. Although wire rod is an energy-consuming industry, they have long focused on environmental sustainability issues and are actively promoting ESG, with advance deployment of energy saving and carbon reduction. They have established an energy saving team since 2006 and a sustainability team in 2022, with environmental, social responsibility, corporate governance management guidelines and specific action plans disclosed in the sustainability report. In terms of energy saving in production lines, all boiler fuels have been changed from heavy oil to natural gas (LNG), and all STC annealing furnace fuels have been changed from propane (LPG) to natural gas, significantly reducing carbon emissions. In addition, the solar power generation system is expected to be completed within two years. New Best Wire Industrial said that the Taiwan plant’s overall revenue will grow 2.6% in 2022. They have reduced greenhouse gas emissions by 3.5% (which is 1,200 tons) and waste by 4.9% (which is 342 tons).

Leading Chinese Auto Parts Company Invests RMB1.5 Billion in Zhongde Industrial Park

Alliance Global Technology Enters China and Southeast Asia with Dental Implants 全球安聯Anker人工牙根 打入大陸、東南亞

Established in 1986, Anchor Fasteners Industrial is a leading manufacturer of expansion bolts, riveting fasteners, rivet nuts, auto and motorcycle parts, special fasteners, and machined fasteners. The brand “Anker” dental implants created by Alliance Global Technology affiliated to Anchor Fasteners Industrial has been certified by China Food and Drug Administration (CFDA) and has tapped into China and Southeast Asia.

At present, in addition to obtaining CEO120 product certificate for the EU market, as well as the FDA certificate, Alliance Global Technology is the only domestic manufacturing company that is comparable to European and American brands and OEM/ODM OEM for European and American dental implant manufacturers. The Anker brand will head to the U.S., Europe and South Korea.

On May 28, the construction of Huaxiang New Energy Auto Parts Industrial Park was officially launched within Zhongde (Shenyang) High-End Equipment Manufacturing Industrial Park. It is reported that the project of Huaxiang New Energy Auto Parts Industrial Park, with a total investment of RMB 1.5 billion, is a modernized park integrating R&D, production and sales. The park is planned to have a total construction area of about 120,000 square meters, mainly containing R&D and testing centers, industrial plants, comprehensive office buildings and related ancillary facilities. After the project is completed, it will mainly support Brilliance BMW’s new energy vehicles with automobile chassis, interior and exterior parts and battery shells, as well as develop upstream and downstream business related to the auto parts industry. The park is planned to be completed and put into production in May 2024. After the project reaches production target, it is expected to add an annual output value of RMB 1.8 billion and an annual tax of RMB 80 million.

總投資15億元人民幣 汽配龍頭企業落戶瀋陽中德 產業園

SAIC Group’s New Energy Vehicles to Expand Overseas 上汽新能源“加速拓展海外市場”

From April 26 to 29, Shanghai Mayor led a delegation from Shanghai to Indonesia to promote high-level and pragmatic cooperation between Shanghai and Indonesia to build a link between China and Indonesia.

During his meeting with Minister of Maritime and Investment Coordination, the Shanghai Mayor said he would further deepen the economic and trade relations and industrial cooperation between Shanghai and Indonesia, support enterprises to expand two-way investment cooperation, and welcome more Indonesian enterprises to participate in expositions. The Mayor and the Minister witnessed the signing of a Memorandum of Understanding for SAIC-GM-Wuling Indonesia’s new energy vehicle project.

On April 30, SAIC Group announced that its subsidiary SAIC-GM-Wuling and the Ministry of Marine and Investment Coordination of Indonesia officially signed a memorandum of understanding on new energy vehicle investment projects, which will actively expand investment in Indonesia, and introduce more new energy vehicles to the local market.

Changhua Holding Group’s 1st Phase High Strength Automotive Fastener Production Line

長華集團汽車高強度緊 固件生產線一期建設

Changhua Holding Group (formerly Zhejiang Changhua Auto Parts) intends to invest a raised capital of RMB351 million in building a production line with an annual capacity of 2 billion pieces of high-strength automotive fasteners. Upon completion of Phase I, the production line will be able to produce 925 million pieces of high-strength fasteners per year, which will provide important support for the Company’s strategic development goal towards high-end and automated fastening products.

The main plant has been completed and two fully automatic electroplating production lines have been installed. The installation of a wastewater treatment system together with the electroplating line has been completed. Also completed is the installation of a spheroidized annealing furnace with protective atmosphere imported from Japan, with a production capacity of 1,900 tons per month.

Finework (Hunan, China) New Energy Technology to Set up Operations in Hong Kong and Vietnam

飛沃科技擬在香港與越南設立據點

Finework New Energy Technology is a company specializing in the development and manufacture of high strength fasteners and provides total fastening solutions to customers. The company intends to establish a whollyowned subsidiary, Finework International, in Hong Kong with a capital of HK$20 million.

After the establishment of Finework International, the company intends to use Finework International to cofound Finework (Vietnam) Fastener Manufacturing (capital: US$2 million) in Vietnam with another company, where Finework International accounts for 95% of the capital and the other company accounts for 5%.

One-stop Manufacturing + Multi-Locations

Linkwell IndustryReliable Support for Global Fastener Demand

One-stop Manufacturing Process

As one of the early-established fastener traders in Taiwan, Linkwell has successfully crossed over to fastener manufacturing and can provide a complete production flow including wire drawing, forming, heading, tail clamping, thread rolling, tapping, degreasing, heat treatment, plating, coating, quality inspection, and packaging. They have mastered one-stop production and have access to traders’ fastener supply routes.

Over the past 46 years, they have weathered various market turbulences through resilience reflected in their stable supply. Linkwell has a reputation for their reliability and Taiwanese high quality, supplying to customers in the machinery, automotive, and construction industries in various countries. Linkwell has factories in Vietnam, Malaysia, Indonesia, Thailand, China, and Taiwan, with customers all over the world, mainly from Europe and the United States.

5 Overseas Locations

Each of their plants has its own specialty. The Vietnam and China plants specialize in carbon steel screws (the Vietnam plant focuses on small screws and self-drilling screws; the China plant focuses on large bolts); the Indonesia and Malaysia plants mainly produce stainless steel screws. The Vietnam plant started production 6 years ago, and the whole process including heading,

threading, slotting, tail clamping, heat treatment, and plating are all completed under strict quality control in the plant. All aspects of the Vietnam plant have been well-established, and the number of orders continues to increase. See Table 1 for details.

Rest Assured for Stable Supply from 5 Overseas Locations

In the midst of the Russia-Ukraine war and the tension in Asia Pacific, some European and American customers have asked Taiwanese manufacturers to find another production base in addition to their Taiwan bases. This concept is also termed as "Taiwan + 1".

In regard to this trend, Linkwell had been expanding its overseas plants for many years. With access to European and American markets as well as by having multiple overseas locations, Linkwell continues to automate production, lower their operating costs, and produce higher-value special products. This is why they can stick it out through political and economic crisis in the past half a century without crumbling and continue to provide a steady supply of fasteners.

Looking ahead to the second half of the year and next year, they will continue to be a one-stop fastener hub and strengthen collaborations with customers to create a better future together.

Mainly stainless steel (A2, A4. 410 SS) screws and small screws. Self-drilling, chipboard , drywall, self-tapping, machine screws, and bolts below (including) Ø M10.

Mainly stainless steel (A2, A4, 410 SS) screws and small screws. Selfdrilling, chipboard, drywall, self-tapping, machine screws.

Mainly carbon steel and small screws. Self-drilling screws, chipboard screws, drywall screws, collated screws, self-tapping screws, concrete screws.

Carriage bolts (DIN 603), hexagon head screws, flanged bolts, machine screws.

一條龍製造 + 多據點佈局 順承 為全球扣件需求提供可靠後盾

Customized Fasteners Supported by ISO & TAF Accredited Laboratory

Increased Inspection Equipment

Over recent years Rexlen has experienced continuous growth in sales, which the company says is primarily down to its continuous improvement within its product quality, as well as the long-term relationships it has with its customers. “We are dedicated to providing products that not only meet but exceed our global client’s requirements,” states Rexlen. “A key factor in ensuring this quality is our fully equipped quality control laboratory, which was certified in 2005 and has helped broaden our offering and services - while ensuring the highest products quality - meeting worldwide specifications.”

To ensure its laboratory is able to carry out all the necessary tests and procedures, Rexlen increased its inspection equipment, with the introduction of a wide variety of machines including a spectrometer and a coordinate measuring machine.

Specialty: Fastener Customizability

A specialty of Rexlen is its ability to manufacture customized fasteners and work with customers from the North American and European markets, in a variety of industries. “We create an Advanced Product Quality Planning (APQP) process for every order, with our engineers monitoring every production process to ensure the quality meets all customer requirements. We also have a strong research and development team, who have a significant amount of experience within the fastener field, which enables us to develop new products and processes.”

ISO & TAF Accredited Lab

We have been in the fastener sector for more than 46 years and have accumulated technical experience in a wide range of different end use industries. Our relationship with customers is built on friendship, mutual trust and support, it is not just about business. With our ISO and TAF accredited laboratory, we strictly monitor not only our own manufacturing, but the entire supply-chain. Thanks to our ISO and TAF accredited laboratory we are able to monitor not only our own manufacturing, but the entire supply-chain. This means our customers can be confident that every product they receive from us is of excellent quality.

Rexlen Corporation was established in 1977, and headquartered in Kaohsiung, Taiwan. Rexlen Corporation is able to offer a wide variety of fasteners and special parts according to customer drawings, including forged parts, casting parts, stamping parts as well as turning parts.

Article provided by Rexlen

The Growing Influence of Emerging Countries in the Global Fastener Industry

The United States, Canada, Japan, Taiwan and Europe have been the world's major fastener trade hotspots for long and every year they trade a lot of fasteners with other countries and regions, which, in addition to the developed countries everyone is already familiar with, include many emerging fastener countries as well. Even among many of these emerging fastener countries, their import and export volumes of fasteners have surpassed those of other developed countries. In addition to gradually emerging in the global supply chain, these new fastener manufacturing stars are also beginning to play a more important role in the global supply and demand for certain products, which nobody can ignore.

Below, we'll take a look at the top 10 fastener import and export partners of the U.S., Canada, the European Union, Japan, and Taiwan in 2022 to learn more about the emerging fastener countries and markets to watch in the future.

The U.S.

(in million USD, in descending order according to figures of 2022)

IMPORT

In terms of U.S. fastener imports, the emerging countries ranked among its top 10 import sources were India, Mexico and Thailand. The fastener trade of these three countries with the U.S. in the past three years were growing every year, and the import value in 2022 was more than 150 million U.S. dollars respectively. India even surpassed Italy in 2021 to become the 7th largest source of fasteners imported into the United States. Mexico and Thailand also showed the potential to surpass Italy.

EXPORT

In terms of U.S. fastener exports, the emerging countries ranked among its top 10 export destinations were Mexico and Brazil. Mexico was the largest U.S. fastener export destination, which might be benefited from the U.S.-Mexico-Canada Agreement (USMCA) as well as the fact that many U.S. local enterprises have set up their factories in Mexico. In addition, Brazil was also U.S. 5th largest export destination and over the past three years its export value also showed a growing trend. However, the exports to Brazil were still far less than 1/10 of the scale of those to Mexico.

Canada IMPORT

In terms of Canada's fastener imports, the emerging countries that made up the top 10 sources of imports were Vietnam and India, with imports from Vietnam exceeding US$47 million and those from India approaching US$25 million in 2022, both of which were on the growing line still. Vietnam, in particular, was Canada's 5th largest source of imports, closing in on Japan's share of the Canadian market.

EXPORT

In terms of Canada's fastener exports, Mexico, Brazil, Morocco and Poland were among Canada's top 10 export destinations, showing that in addition to their mature fastener manufacturing industries, these emerging countries also had a considerable demand for Canadian fasteners. In particular, Mexico, in addition to large imports from the United States (more than 1 billion U.S. dollars of fasteners), also imported about 25 million U.S. dollars of fasteners from Canada, and the scale of its demand for imports from Canada was similar to China’s fastener imports from Canada. Another noteworthy export destination was Morocco, as in 2022 Canada's fastener exports to Morocco suddenly surged by more than 10 times, crowding out the original position taken by Poland.

(in USD, in descending order according to figures of 2022)

The EU IMPORT

In terms of the EU's fastener imports, the emerging countries ranked among the top 10 sources of imports were Turkey, Vietnam, India, Thailand and Malaysia, indicating that in addition to China and Taiwan, which respectively ranked in the 1st and 2nd places, the EU also relied upon the fastener supply from emerging countries. In 2022, the EU's imports of fasteners from Turkey, Vietnam and India were all more than the level of 100,000 tons, and these three countries also showed the scale of more than 400 million euros each.

EXPORT

In terms of the EU's fastener exports, Mexico, Turkey, Brazil, India and Morocco were also among the EU's top 10 export destinations. These countries are the targets in which many European and U.S. companies prefer making investment and their booming manufacturing industries also show a huge demand for fasteners from the EU. It is especially worth noting that Morocco, in addition to being Canada's main fastener export partner, was also the EU's main fastener export partner. The data show that Morocco imported about 15,000 tons (or equivalent value of 112 million euros) of fasteners in 2022 from the EU. Morocco’s demand for fasteners from the EU was about the same volume of India’s or Norway’s demand for fasteners from the EU.

(In descending order according to weights of 2022)

Industry Focus

Japan IMPORT

In terms of Japan's fastener imports, Vietnam, Thailand, and Malaysia were also major sources of imports. In 2022, Japan's imports of fasteners from Vietnam were about the same size as those from South Korea, and in terms of value, it amounted to about 4.967 billion yen. In the same year, Japan imported only 4,678 tons of fasteners from Thailand, but in terms of value, it amounted to 4.112 billion yens. This shows that the unit price of fasteners imported from Thailand was much higher than that imported from Vietnam. Malaysia was also Japan's 6th largest fastener import source, although it had less than 2,000 tons.

EXPORT

In terms of Japan's fastener exports, the top 10 export destinations for Japanese fasteners also included emerging countries like Thailand, Indonesia, India, Mexico, Brazil and Malaysia. These emerging countries are the investment hotspots of many Japanese leading automotive and electronics companies, which might be one of the main reasons for the large increase in demand for Japanese fasteners. Japan's exports of fasteners to these emerging countries were larger than those exported to China and the U.S., indicating that Japan's share of fastener exports to emerging markets was quite high.

(in descending order according to weights of 2022)

Source: Ministry of Finance, Japan

Taiwan IMPORT

In terms of Taiwan’s fastener imports, in addition to a large proportion of imports from Japan and China, some fasteners were also imported from Vietnam, the Philippines, Thailand and Malaysia. In particular, Taiwan imported 2,475 tons (approximately US$5.56 million) of fasteners from Vietnam and 1,228 tons (approximately US$4.23 million) of fasteners from the Philippines, which respectively ranked as the 3rd and 4th largest fastener import sources for Taiwan. Although imports of fasteners from Vietnam in 2022 showed a downward trend year-on-year, there was a slight increase in terms of value.

EXPORT

In terms of Taiwan's fastener exports, almost all of them were exported to Europe, the United States and Japan, and the only emerging country on the list of Taiwan’s top 10 fastener export destinations was Mexico, with an export value comparable to that of Italy or Sweden. In 2022 Taiwan's exports of fasteners to Mexico reached about 33,000 tons in terms of volume, and in terms of value, it was about 137 million U.S. dollars. Over the past few years, Mexico has been Taiwan's most important fastener export partner in Latin America. The data shows that Taiwan's fastener exports to Mexico continued to climb steadily from 2020 through 2022.

(in descending order according to weights of 2022)

Import

HS 7318 Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel

Source: Bureau of Foreign Trade (Taiwan)

Summary

In the past, the scale of production and trade of fasteners have been always dominated by the European Union, the United States, Japan, Taiwan, China, etc. However, with the consideration of raw materials and other related operating costs, and the improvement in manufacturing technology and economy, many emerging countries have also entered into the manufacturing of fasteners. And, benefiting from their cheaper labor & production costs and international/regional tariff-free & preferential trade agreements, fasteners produced in emerging countries gradually became more attractive to the international fastener supply chain. On the other hand, as enterprises in various countries extended their business reach and began to expand overseas, these new factories and bases in the emerging markets were also boosting the import demand for more advanced fastening solutions.

The data shown in the tables also prove that emerging countries are becoming more and more influential in the global fastener trade. In addition, fastener manufacturers in these emerging countries often import higher-end fastener manufacturing machines from Taiwan, Japan, etc., and the quality of the fasteners they produce is also improving year by year. Under the trend of the rise of more latecomers, fastener manufacturers wishing to secure their strong foothold in the global supply chain should not only speed up their pace to improve their industrial technology level to make their own uniqueness and differentiation, but at the same time, they can also make good use of the strengths of these emerging countries to make up for their own disadvantages, and complement each other, so that they can create more flexibility and room for operation in the international market.

Article by Gang Hao Chang, Vice Editor-in-Chief of Fastener World Copyright owned by Fastener World

Fastener Innovation Alley 扣件新品大道

compiled by Fastener World

Yellow Trivalent Chromate Plating 黃色三價鉻酸鹽電鍍

At present, trivalent chromates include chromates, unichromates and black variants (chromates are silver white), but they have never appeared yellow like hexavalent chromates. In the past, hexavalent chromium plating was mostly used for yellow colored products. However, in light of the global environmental issues, Heiwa Kaken from Japan has developed a surface treatment technology that can give a yellow or red color like hexavalent chromate does, even on trivalent products.

Characteristics of Trivalent Yellow

* Giving a yellow or red interference color as hexavalent chromate does!

* Corrosion resistance is equivalent to trivalent chromate: 72 hours without white rust, 120 hours without red rust!

* No hexavalent dissolution will be detected!

* Together with trivalent chromate, it can be used to distinguish minor differences in size and threads.

TriLead Crack-free Woodworking Screw 「TriLead」木工螺絲

The patent-pending TriLead screw, with a special bit shape newly developed by SYNEGIC, can cut wood and discharge wood chips to perfectly drill into MDF or particle boards without cracking the wood or creating burrs during the drilling process. There is no need to drill holes in the wood before use. TriLead screw adopts chromate surface treatment, and can be used with hexagonal bits, suitable for wood with the thickness of 10-20mm, including shelves and other household furniture.

Kwik-X 錨固系統

Hilti North America, a global leader providing innovative tools, technology, software, and services to the commercial construction industry, introduces the Kwik-X Dual Action Anchor system, the first of its kind on the market, combining the high performance of adhesive anchors and installation speed and simplicity of screw anchors. Reducing multiple steps in the traditional adhesive anchor installation process, Kwik-X reduces costly man hours and jobsite expenses. Kwik-X can reduce installation time by up to 70% and save up to 20% in total cost of installation when compared to traditional adhesive anchoring systems. “Contractors can save time and money by reducing the complexity of installation with the Kwik-X. Leading up to a 4x faster installation over traditional adhesive anchors and combined with Hilti’s industry-leading expertise, thereby reducing labor costs and helping deliver peace of mind to a jobsite,” said Rafael Santos, Senior Director of the Hilti North America Fastening and Protection Business. Comprised of the convenient Kwik-X pre-portioned adhesive capsule and Kwik HUS-EZ screw anchor, the system provides the necessary performance for safety-critical applications. It reduces the number of steps in the installation process, such as hole cleaning, curing time, and dispensing – eliminating adhesive waste and the need for accessories like brushes, air compressors, and dispensers. This simplicity results in increased productivity by reducing the risk of human error. Additional features such as high performance in real jobsite conditions and the capability to remove and reinstall the anchor in the same borehole help cater to the needs of the installer. These factors help save contractors' time and money.

TAKECOAT-1000 「竹塗料-1000」

Oxidation Colored Stainless Steel Screws 不銹鋼氧化著色螺絲

Ikeda Metal Industrial from Japan has developed stainless steel screws colored blue, yellow or red by oxidation coloring treatment. These screws are designed to help operators detect foreign substance contamination at food production sites early and prevent shipping contaminated products. Stainless steel screws are commonly used in the assembly of food manufacturing machinery because of their corrosion resistance, but they can be difficult to locate if they become loose and fall off and get mixed with milk, mayonnaise or other white colored foods. In fact, there have been cases where packaging was mixed with screws and shipped unknowingly.

To solve this problem, Ikeda Metal Industrial designed a special surface treatment called “stainless steel oxidation coloring” for coloring stainless steel screws to comply with the Food Sanitation Law. By easily identifying the color of the screws, even if it is mixed with food, it is possible to detect foreign substance contamination at an early stage and prevent shipping products from mixing with other substances.

“TAKECOAT” developed by TAKENAKA SEISAKUSHO from Japan is claimed to take the highest share in the fluorocarbon polymer market globally. It can provide excellent rust and corrosion resistance in harsh environments such as in the sea and desert. It has 6-times the durability of hot-dip galvanizing as tested in a salt spray test.

TAKECOAT® -1000 has a twolayer structure of fluorocarbon polymer as the upper film and a special undertreatment layer. Combined with a special treatment technology, the thin films are excellent in corrosion and rust resistance and have high lubricity, suited for fasteners. TAKECOAT has been used on bolts and metal parts used on bridges, insert pipes, marine structures and oil refineries.

Focused On Stainless Steel Fasteners and Photovoltaic Parts

嘉興海納緊固件

2023銷售上看2億人民幣

Established in 2012, Haina Fasteners is located in Jiaxing, a heartland of fasteners. They mainly produce stainless steel fasteners and photovoltaic parts, aluminum profiles and parts, which are mainly sold to Europe and South America. Their monthly sales volume is about 600 tons and annual production value has reached RMB 150 million. They also have thousands of tons of stainless steel fasteners in stock, including DIN933, DIN912, DIN934, DIN125, DIN603, DIN975, DIN976, DIN6023, photovoltaic double head bolts and stainless steel rooftop hooks.

They have advanced multi-station production equipment to achieve high speed, high quality and customized fastener production. With the management system certified to ISO 9000, SGS, BV International, as well as various quality inspection equipment including stainless steel spectrometers, hardness testers, polishing machines, projectors, and through gauges, they can provide fastener products of various specifications such as DIN, ISO, GB, ASME/ANSI, BS, JIS AS, etc. The products have been highly praised by famous enterprises at home and abroad. The stainless steel fasteners are available in SS201, SS304, SS316, special stainless steel, and aluminum materials like AL6063 and AL6005. They have sufficient stock, a complete range of products, and support fast delivery and various non-standard customization.

2023 Sales Expected to Breach RMB 200 Million

In the big market of fasteners, they have turned focus to the booming business opportunities in the photovoltaic industry and included hanging bolts and various solar panel fasteners into their product lineup. “We see the photovoltaic industry as a new energy industry with a promising future in the coming years,” said general manager Tony Fang. “We are able to provide onestop sourcing and customized design and production for customers around the world who are in need of photovoltaic fasteners. We can supply all the parts used in photovoltaic mounting systems, whether they are fasteners or aluminum profiles and parts. We can offer competitive prices and set no restriction on minimum order quantity.”

High Tensile Strength Supporting Critical Infrastructures

Tony pointed out that the technical advantage of Haina Fasteners is that their large stainless steel threaded rods can reach 800-1000MPa tensile strength. The rods have been used in Hong Kong-Zhuhai-Macau Bridge, Tamburong Bridge, Samsung Electronics' Egypt plant, the new train station in Cairo of Egypt, and telecommunication towers in Vietnam, playing a role of undefeated supporter for critical large infrastructures that enable public transportation, as well as guarding the lives of the public. The future of Haina Fasteners’ technical development is bright.

Eyeing Europe and South America; Sales to Grow 30%

In 2023, the world opens its doors to global business travelers. In addition to welcoming inquiries and collaboration, Haina Fasteners is taking the initiative to tap into the European and South American markets. “I am very excited about our target markets and believe these years will be a period of high growth,” said Tony. “Looking ahead to the end of this year, I believe we can increase our sales by an additional 30% to reach RMB 200 million. I look forward to potential customers and buyers from all over the world and they are welcome to contact us to create great business opportunities after the pandemic!”

Article by Dean Tseng, Fastener World; Copyright owned by Fastener World

Fastener Trade Statistics of in 2018-2022

According to the International Monetary Fund (IMF), Brazil’s Gross Domestic Product (GDP) reached approximately US$1.64 trillion in 2021, placing it 12th among the world’s major economies. Brazil is also one of the Latin American countries with relatively advanced development and particularly dynamic industrial activities. The booming development of the country’s automotive, steel, aerospace and other industries has also synchronized the demand for many fastener products.

According to the Brazilian Customs’ Trade Database, in terms of net import weight, Brazil imported a total of 192,700 metric tons of fastener products (HS code 7318) from the world in 2022, which amounted to about US$998 million in terms of import value; in terms of net export weight, Brazil exported about 30,800 metric tons of fastener products to the world in 2022, which amounted to about US$167 million in terms of export value. Although its import and export weight and value are not as high as those of major fastener importers and exporters such as Taiwan, Japan, S. Korea, and the United States, it is still a demand and supply market for fasteners that cannot be ignored in the Central and South American region.

Import

Table 1 shows that the imported net weight of fasteners of Brazil declined from 138,500 tons in 2018 to 117,300 tons in 2020, but showed a significant growth in 2021-2022, and the net import weight in these two years was even much higher than the record in 2018-2020. The same trend is also observed in the import value

(Table 4), indicating that the demand for fasteners in Brazil was clearly picking up.

Table 2 shows Brazil’s top 20 sources of fastener imports in 2022. The top 5 in 2022 were China, Japan, Italy, the United States and Taiwan, with net import weights of 100,700 metric tons, 13,600 metric tons, 12,500 metric tons, 11,100 metric tons, and 9,700 metric tons, respectively. More than 50% of Brazil’s fasteners were imported from China, and in just two years from 2020-2022, the net weight of imports doubled, showing a heavy reliance on China’s supply chain. To observe from the import value (Table 5) the ranking was slightly changed. The top 5 sources of imports in 2022 were China, the United States, Japan, Germany, and Italy, with the import values of US$ 271 million, US$ 171 million, US$ 93 million, US$ 90 million and US$ 74 million, respectively. Whether in terms of import weight or import value, 2021 is a significant turning point. Brazilian demand for Chinese fasteners doubled in that year and this trend continued through 2022.

To view from the imported fastener categories, in terms of net import weight (Table 3), the top 3 imported fasteners of Brazil in 2022 were iron and steel screws & bolts (731815), iron and steel nuts (731816), and iron and steel self-tapping screws (731814). In terms of import value (Table 6), the top 3 fasteners imported into Brazil in the same year were iron and steel screws & bolts (731815), iron and steel nuts (731816), and iron and steel non-threaded articles (731829).

Export

Table 7 shows that the annual weight of fastener products exported from Brazil to the world remained at about 22-25 thousand metric tons over the 2018-2022 period, but then suddenly doubled in 2021 to about 50 thousand metric tons, then stabilized and declined to about 30 thousand metric tons in 2022. To observe from the export value (Table 10), the export value of fasteners exported from Brazil to the world peaked at US$180 million in 2019, while the lowest point was at US$129 million in 2020 when the pandemic burst out. The record in 2022 outperformed that in 2021, and should slowly rebound to the 2019 level if the growth trend remains unchanged.

Table 1. Brazilian Fastener Import by Net Weight (KG)

Article by Gang Hao Chang, Vice Editor-in-Chief of Fastener World Copyright owned by Fastener World

Threaded screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)

Table 2. Top 20 Fastener Import Origins of Brazil by Net Weight (KG)

Table 3. Main Imported Fastener Categories by Net Weight (KG)

Table 4. Brazilian Fastener Import by US$ FOB

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel

Table 5. Top 20 Fastener Import Origins of Brazil by US$ FOB

Table 6. Main Imported Fastener Categories by US$

FOB

Table 7. Brazilian Fastener Export by Net Weight (KG)

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel

Table 8. Top 20 Fastener Export Destinations of Brazil by Net Weight (KG)

Table 9. Main Exported Fastener Categories by Net Weight (KG)

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel

Table 11. Top 20 Fastener Export Destinations of Brazil by US$ FOB

screws and bolts, of iron or steel, whether or not with their nuts and washers (excl. coach screws and other wood screws, screw hooks and screw rings, self-tapping screws, lag screws, stoppers, plugs and the like, threaded)

Table 10. Brazilian Fastener Export by US$ FOB

Table 12. Main Exported Fastener Categories by US$ FOB

Table 8 shows the top 20 major export destinations of Brazil in 2022. The top 5 countries were Argentina, Paraguay, the United States, Uruguay, and Germany, with the export weights of 14.2 thousand tons, 4,600 tons, 4,100 tons, 1,200 tons, and 1,100 tons, respectively. Among them, about 46% were exported to Argentina. The data also show that Brazilian fasteners were mainly sold to the American market (especially South America). If we look at the export value (Table 11), the ranking basically did not change a lot, and the top 5 rankings were Argentina, the United States, Paraguay, Germany, and France, with the export value of US$ 53 million, US$ 33 million, US$ 15 million, US$ 8 million, and US$ 7 million, respectively.

To view the exported fastener categories, in terms of net export weight (Table 9), the top 3 major fastener products exported from Brazil to the world in 2022 were iron and steel screws & bolts (731815), iron and steel nuts (731816), and iron and steel non-threaded articles (731819), and in terms of export value (Table 12), the top 3 fastener products exported from Brazil to the world in the same year were iron and steel screws & bolts (731815), iron and steel nuts (731816), and iron and steel non-threaded articles (731829).

Summary

Brazil is currently Taiwan’s 2nd largest fastener export destination in Latin America, but its proportion in 2022 only accounted for less than 0.5% of Taiwan’s total fastener export. Compared to Mexico, which has accounted for more than 2% of Taiwan’s total exports of fasteners, there is still much room for Taiwan’s fastener export to Brazil. And, with the fact that Taiwan is still among Brazil’s top 5 fastener import sources, Brazilian buyers show a certain demand for Taiwanese fasteners. If Taiwanese fastener suppliers would like to enhance the development of Latin America, Brazil (in addition to Mexico) may also be a good approach and market worthy of strengthening the development.

Fastener Trade Partners of ASEAN Countries (2019-2022)

2019-2022東協國家扣件貿易統計

Note: All countries in Tables are ranked according to values in 2022

Over the past four years, the world has entered an era of restructuring economic entities, forming a global economic structure split into two camps. Against this background, Europe, the United States and Japan have recently shifted the focus of their political and economic collaboration to the South China Sea. In addition to India in South Asia, ASEAN as the world's fifth largest economy has become a hot spot for economic and trade collaboration as well as foreign investment. As the competition in Southeast Asia and ASEAN is turning white hot, what changes have occurred in the trade volume of local fasteners from 2019 to now? Let us dig in with this article.

This article begins with an overview of key economic indicators in ASEAN, followed by an analysis of fastener trade data for six of the ASEAN countries, including Thailand, Malaysia, the Philippines, Indonesia, Vietnam, and Singapore. It should be noted that the data taken from ASEANstats is currently up-to-date until 2022, while the data taken from the Customs offices of several countries have been updated until the first five months of 2023.

ASEAN Key Economic Indicators

Table 1. Basic ASEAN Indicators as of July 2023

To help fastener business owners evaluate the overall market size of ASEAN, a table of economic indicators for the region is presented (see Table 1). Last year, the population of ASEAN grew to 669.2 million, GDP grew by 7.7% to US$3.6 trillion, GDP per capita grew by 6.6% to US$5,419, and total trade in all commodities grew by 15% to US$3.8 trillion, of which total exports grew by 14% to US$1.9 trillion, total imports grew by 15% to US$1.8 trillion, and foreign investment grew by 5.5% to US$224.2 billion. Table 1 reveals that the ASEAN market shrank only in 2020, the year of COVID outbreak, but quickly achieved significant growth after the outbreak, making ASEAN an economy with strong momentum.

Fastener Trade Data of All ASEAN Countries

Next, we will look at ASEAN's overall fastener trade figures. Since the import and export of fasteners from Myanmar, Cambodia, Laos and Brunei are much lower, we are not going to elaborate on them.

In terms of imports ( Table 2), the value of fasteners imported by ASEAN from the world grew by 4.8% to US$3.81 billion last year. Demand was the highest in Thailand, where import fell by 3.6% to US$1.1 billion. The second highest was Vietnam, with import falling 3.2% to US$730 million. The third highest was Malaysia, with import growing by 17.2% to US$612 million. Indonesia's import grew by 22.7% to US$589 million. Singapore's import grew by 10.2% to US$481 million. The Philippines decreased by 2% to US$199 million. Thailand and Vietnam experienced small declines, while Malaysia, Indonesia and Singapore all achieved double-digit growth. Comparing 2022 and 2019, most of the ASEAN countries, with the exception of Myanmar, Laos and Brunei, have already surpassed their pre-pandemic levels of imports after the end of the pandemic.

(Source: ASEANstats)

Table 2. ASEAN Fastener Import Value in USD from the World (2019-2022)

In terms of exports ( Table 3 ), the value of fasteners exported from ASEAN to the world grew by 12.8% to US$2.34 billion last year. The highest demand was from Vietnam, with export growing by 26.5% to US$680 million. The second highest was Thailand, with export growing by 11.2% to US$672 million. The third highest was Singapore, with import increasing by 12.2% to US$368 million. Malaysia's export decreased by 0.8% to US$360 million. The Philippines' export decreased by 1.6% to US$140 million. Indonesia's export grew by 19.9% to US$116 million. Malaysia and the Philippines experienced small declines, while Thailand, Singapore and Indonesia all achieved double-digit growth. Comparing 2022 and 2019, most of the ASEAN countries, with the exception of the Philippines and Brunei, have already surpassed their pre-pandemic levels of exports after the end of the pandemic.

Thailand

(Source: Thai Customs)

Table 3. ASEAN Fastener Export Value in USD to the World (2019-2022)

(Source: ASEANstats)

Table 4. Thai Fastener Import Value in USD from the World

In 2022, Thailand's global imports of fasteners ( Table 4) grew by 12.7%, surpassing the 1 billion mark to reach US$1.12 billion, and reached US$434 million in the first five months of 2023. Thailand's top five sources of imports in 2022 were Japan (US$433 million, up 3.4%), China (US$260 million, up

32.6%), Taiwan (US$105 million, up 16.8%), Malaysia (US$69.48 million, up 2.1%), and the United States (US$64.28 million, up 58.9%). With the exception of S. Korea, Thailand's imports of fasteners from its top 10 sources are now higher than they were before the outbreak. The increase in Thailand's demand for Chinese and U.S.-made fasteners is noteworthy.

Thailand's global export of fasteners ( Table 5 ) jumped 30% to US$676 million last year and reached US$258 million in the first five months of this year. Thailand's top five export destinations in 2022 were the United States (US$148 million, exceeding the billion mark, up 34.8%), India (US$64.85 million, up 34.8%), Japan (US$47.91 million, up 12%), Indonesia (US$45.14 million, down 4.2%) and Germany (US$43.45 million, up 32.8%). Thailand's exports of fasteners to the top 10 destinations are all higher than they were before the outbreak. In addition to the surge in demand for U.S. fasteners, Thailand's export of fasteners to the U.S. has also increased significantly.

Malaysia

Malaysia's global import of fasteners ( Table 6 ) grew by 22.7% to US$558 million last year and reached US$218 million in the first five months of this year. Malaysia's top five sources of imports in 2022 were China (US$191 million, up 12.3%), Singapore (US$131 million, breaking the 100 million mark and surging 73.1%), Japan (US$61.32 million, up 6.3%), the United States (US$42.26 million, up 25.4%), and Taiwan (US$29.81 million, down 4.2%). Malaysia's imports of fasteners from the top 10 countries of origin are now higher than they were before the outbreak. The notable increase in Malaysia's demand for fasteners made in Singapore and the United States is noteworthy.

Malaysia's global export of fasteners ( Table 7 ) grew by 3.5% to US$327 million last year and reached US$115 million in the first five months of this year. Thailand's top five export destinations in

Table 5. Thai Fastener Export Value in USD to the World

(Source: Thai Customs)

Table 6. Malaysian Fastener Import Value in USD from the World

(Source: Malaysian Customs)

Table 7. Malaysian Fastener Export Value in USD to the World

Industry Focus

of fasteners to the top 10 destinations are now higher than they were before the outbreak. The demand for fasteners exported from Malaysia to Singapore and Thailand declined significantly, while demand for fasteners exported to the United States increased significantly.

Philippines

Table 8. Philippine Fastener Import Value in USD from the World (Quantity in KG)

Philippine global imports of fasteners ( Table 8) grew by 4.3% to US$176 million last year and reached US$50.28 million in the first five months of this year. Philippine top five sources of imports in 2022 were China (US$52.79 million, up 5.2%), Japan (US$44.04 million, down 2.6%), Singapore (US$21.20 million, up 56.1%), Taiwan (US$10.23 million, down 14.8%), and Thailand (US$6.65 million, up 10.2%). With the exception of Taiwan and Hong Kong, Philippine imports of fasteners from the top 10 sources are now higher than they were before the outbreak. The notable increase in Philippine demand for Singapore-made fasteners is noteworthy, while the demand for Taiwan-made fasteners declined significantly.

Philippine global exports of fasteners ( Table 9) grew 26.3% to US$180 million last year and reached US$17.59 million in the first five months of this year. Philippine top five export destinations in 2022 were Japan (US$126 million, up 40.6%), the United States (US$13.93 million, down 2.7%), Germany (US$8.48 million, down 17.8%), South Korea (US$8.1 million, down 2.9%), and France (US$4.56 million, an 18-fold jump). With the exception of Germany and Italy, Philippine exports of fasteners to the top 10 destinations are now higher than they were before the outbreak. Over the past four years, the value of fasteners exported from the Philippines has fluctuated greatly, especially the exports to France, the Netherlands, and Switzerland. Notably, the value of fasteners exported from the Philippines to Italy declined for the fourth consecutive year.

Table 9. Philippine Fastener Export Value in USD to the World (Quantity in KG)

Industry Focus

Indonesia

Indonesia's global imports of fasteners ( Table 10 ) grew by 22.7% to USD 589 million last year. Indonesia's top five sources of imports in 2022 were Japan (US$233 million, up 12.6%), China (US$125 million, up 33.8%), Thailand (US$45.33 million, up 19.3%), Australia (US$31.63 million, up 9.4%), and South Korea (US$28.32 million, surging 124%). With the exception of Italy, Indonesia's imports of fasteners from the top 10 sources are now higher than they were before the outbreak. The notable increase in Indonesia's demand for fasteners made in S. Korea and China is noteworthy.

Indonesia's global exports of fasteners ( Table 11 ) grew by 20% last year to US$116 million. Indonesia's top five export destinations in 2022 were Germany (US$29.86 million, down 8.7%), Malaysia (US$14.31 million, up 424%), Thailand (US$11.03 million, up 27.2%), Japan (US$8.77 million, down 3.7%), and Singapore (US$7.51 million, a 147-fold jump). With the exception of Japan, the Netherlands and Sweden, Indonesia's exports of fasteners to the top 10 destinations are now higher than they were before the outbreak. India's exports of fasteners to the U.S. have increased eightfold comparing pre- and post-pandemic levels, and the demand for fasteners from Malaysia and Singapore has also soared last year.

Vietnam

Vietnam's global imports of fasteners ( Table 12 ) declined by 3.2% to US$730 million last year. Vietnam's top five sources of imports in 2022 were China (US$358 million, down 6%), Japan (US$120 million, down 4.4%), South Korea (US$88.26 million, down 3.2%), Taiwan (US$58.68 million, up 1.9%), and Thailand (US$22.6 million, down 3.7%). Vietnam's imports of fasteners from five of the top ten sources (Japan, Thailand, the United States, Malaysia, and Singapore) are lower than the level before the outbreak. The momentum of its imports is not stable enough.

Vietnam's global exports of fasteners ( Table 13 ) grew by 26.5% to USD 681 million last year. Vietnam's top five export destinations in 2022 were Germany (US$134 million, up 56.2%), the US (US$118 million, up 28.3%), Japan (US$74.71 million, up 4.1%), the Netherlands (US$70.05 million, up 24.6%) and Canada (US$32.99 million, up 18.9%). With the exception of the UK and

Table 10. Indonesian Fastener Import Value in USD from the World

Table 11. Indonesian Fastener Export Value in USD to the World

Table 12. Vietnamese Fastener Import Value in USD from the World

Industry Focus

Thailand, Indonesia's exports of fasteners to the top 10 destinations are now higher than they were before the outbreak. Vietnam's exports of fasteners to Germany showed the largest increase.

Singapore

Singapore's global imports of fasteners ( Table 14 ) grew by 10.2% to US$482 million last year. Singapore's top five sources of imports in 2022 were China (US$123 million, up 5.7%), the United States (US$102 million, up 13.2%), Malaysia (US$64.76 million, up 14.9%), Taiwan (US$32.41 million, down 8.8%), and Indonesia (US$27.28 million, up 110%). With the exception of the United States, Singapore's imports of fasteners from its top 10 sources are now higher than they were before the outbreak. The notable increase in Singapore's demand for Indonesian-made fasteners is noteworthy, while exports of fasteners to China and Liechtenstein have grown considerably comparing the pre- and post-outbreak levels.

Singapore's global exports of fasteners ( Table 15 ) grew by 12.2% to US$368 million last year. Singapore's top five export destinations in 2022 were Malaysia (US$88.78 million, up 10.47%), Indonesia (US$68.99 million, up 1.2%), India (US$22.81 million, up 18.5%), Thailand (US$21.93 million, up 43.4%) and the United States (US$17.90 million, up 50.6%). With the exception of the Philippines and China, Singapore's exports of fasteners to the top 10 destinations have already exceeded their preoutbreak levels. Among them, Singapore's demand for fasteners from the United States and Thailand has increased significantly.

Era of Restructuring Economic Entities

ASEAN Fastener Trade Momentum is Strong and Promising

ASEAN fastener imports and exports have been on an upward trend over the past four years, generally in line with the "hot spot" trend in ASEAN. Although the momentum of Vietnam remains to be seen and the volume of fastener trade in Myanmar, Cambodia, Laos and Brunei is still low, the growth momentum of the other ASEAN countries is obvious, which can be a valuable region for fastener manufacturers to compete for business opportunities.

Table 13. Vietnamese Fastener Export Value in USD to the World

(Source: ASEANstats)

Table 14. Singaporean Fastener Import Value in USD from the World

(Source: ASEANstats)

Table 15. Singaporean Fastener Export Value in USD to the World

(Source: ASEANstats)

Article by Dean Tseng, Fastener World, Copyright owned by Fastener World Updated

Statistics and Analysis on Global Auto Sales in 2022

2022全球汽車銷售統計與分析

After last year's global auto market downturn, market research firms are predicting a slight rebound in sales this year, but there is still a lot of difficulty in getting back to pre-pandemic levels. With the release of sales statistics by the International Organization of Motor Vehicle Manufacturers (OICA), what past phenomena does this statistics reflect? Which country is the next with the best potential for car sales this year? Let's explore together in this article.

Sales Volume of All Vehicle Types

According to the latest data released by OICA (see Figure 1), global vehicle sales have been hit hard by factors including the pandemic in the past three years, falling from about 91.24 million units in 2019 to a bottom of 78.78 million units in 2020, rebounding to about 82.75 million units in 2021, and falling to about 81.62 million units in 2022, down 1.3% from the previous year. The last two years remained at the low end compared to the pre-pandemic period. Analyzed by continent, Asia Pacific led the world in vehicle sales, with 44,566,542 units in 2022, followed by the Americas with 20,888,241 units, and Europe in the third place with 15,083,088 units. Europe, America and Asia alone accounted for 98.6% of the world's total sales. 1.09 million units were sold in Africa last year.

The top five car sales regions in Asia Pacific are China, India, Japan, ASEAN and South Korea in order. Although China's sales volume of 26.863 million units accounted for more than half of Asia Pacific sales, the growth rate was only 2% compared to last year, and only 4% compared to the pre-pandemic period, so the postpandemic rebound was insufficient. India has emerged as "the next world’s factory" since last year, and foreign investors have been setting up factories there, so Indian sales volume increased significantly by 25% last year to 4.72 million units, with an astounding growth potential. It is worth noting that the Philippines and Vietnam, both in Southeast Asia, are among the countries in the Asia-Pacific region that also saw a 25% increase. Sales in the ASEAN region also increased by 17% to 3.26 million units. Japan's sales fell 5% last year to 4.20 million units.

The top five sales countries are the U.S., Brazil, Canada, Mexico, and Chile in order. Sales in the U.S. far exceeded those of other countries in the Americas by several times, reaching 15.40 million units. The second place is Brazil with 2.104 million units, followed by Canada with 1.56 million units, Mexico with 1.04 million units, and Chile with 426 thousand units. Among these five countries, only Mexico and Chile had a slight increase in sales volume, while the others all dropped. It is worth noting that the sales volume in Central and South America has rebounded continuously in the past three years, while the North American region has generally shown a decline.

The top five sales countries in Europe (including UK) are Germany, UK, France, Italy and Spain in order. The sales volume of these five countries fell last year as well as in the past four years consecutively. In fact, from Table 1, we find that nearly 80% of the sales volume in Europe fell last year, with some of the countries experiencing double-digit declines, which indicates obstruction in European car sales that forms a warning sign.

Fig. 1. All Vehicle Types Global Sales

Table 1. Registrations or Sales of New Vehicles - All Types (Unit: Vehicle)

Table 1. Registrations or Sales of New Vehicles - All Types (Unit: Vehicle)

Overall, in addition to the Asia Pacific region's sales growth of 4.3%, all the other regions fell, with only Europe declining by a double-digit 10.7%.

Passenger Car

Global passenger car sales have been picking up over the past three years and grew by 1.9% to 57.48 million units in 2022 compared to 2021, but the gap is still large compared to the pre-pandemic level of 64.03 million units, indicating that the market is still at a relatively low level (see Figure 2).

The sales volume in Asia Pacific reached 37.50 million units, among which India, ASEAN, Indonesia, Malaysia, Thailand, Vietnam, Philippines and other Southeast Asian countries achieved double-digit growth in sales volume, which is worth paying attention to in terms of the demand for automotive fasteners.

The top five sales countries in Europe are Germany, UK, France, Italy and Spain. Except for Germany, which only increased by 1%, the other four countries all declined, and so did the sales in the whole European region. The sales in Russia and Ukraine in the state of war fell by as much as about 60%.

The two largest passenger car sales countries in the Americas are the U.S. and Brazil. Sales in the U.S. declined by 14% last year to 2.85 million units, a big difference from the 4.71 million units sold before the pandemic, indicating that local sales were still in decline. Brazil grew only 1.2% last year, and overall there was no significant recovery there.

2. Passenger Car Global Sales

Fig.

Table 2. Registrations or Sales of New Vehicles – Passenger Car (Unit: Vehicle)

Commercial Car

Global commercial vehicle sales have fluctuated sharply over the past four years, showing a jagged line (see Figure 3 ), and although they rose sharply in 2021, they fell to a much lower level last year, landing at 24.14 million units.

As we can see from Table 3, the vast majority of the world's commercial vehicles were sold in Europe, but the sales in this region also fell by double digits, with Ukraine, Russia and Austria showing the largest declines. The top five sales countries in this region, including France, UK Germany, Italy and Spain, all experienced continuous sales declines over the past four years, resulting in a sluggish economy.

Although Asia Pacific also had a double-digit decline, there were still many countries with significant increases, including India, Thailand,

Table 2. Registrations or Sales of New Vehicles – Passenger Car (Unit: Vehicle)

Fig. 3. Commercial Car Global Sales

Table 3. Registrations or Sales of New Vehicles – Commercial Car (Unit: Vehicle)

Table 3. Registrations or Sales of New Vehicles – Commercial Car (Unit: Vehicle)

Indonesia, the Philippines, Malaysia, Saudi Arabia and so on, most of which are located in Southeast Asia. Among them, India had the largest increase, up 37%. The largest decline was in China, down 31%.

Past and Future

On the whole, global vehicle sales have been hit hard in the past four years, and the rebound was still weak as of last year. Europe was hit the hardest, and sales volume declined the most. It is worth noting that Asia Pacific has also been hit, but is still showing good resilience, with most countries in this region still experiencing growth.

Several market research companies predict that global auto sales this year are expected to have minor growth despite the concerns that still linger. What is certain is that India, emerging as the next world factory, had a significant double-digit growth last year regardless of vehicle type; and therefore, India's car sales momentum this year is very promising.

Article by Dean Tseng, Fastener World Copyright owned by Fastener World

Introduction

Mexico is a vibrant player in the global fastener trade, boasting a robust manufacturing sector and a strategic geographical location that facilitates trade with major economies. Mexico has emerged as a significant contributor to the global fastener market, thanks to its competitive manufacturing capabilities, skilled labour force, and favourable trade agreements. The country's fastener industry caters to various sectors, including automotive, construction, aerospace, and electronics.

Automotive Industry: Mexico is the seventh-largest global passenger vehicle manufacturer, producing approximately three million vehicles annually. Ninety percent of vehicles produced in Mexico are exported, with 76 percent destined for the United States. Mexico is the sixth-largest manufacturer of heavy-duty vehicles for cargo, hosting 14 manufacturers and assemblers of buses, trucks, tractor trucks and engines. These producers

maintain 11 manufacturing plants that support more than 24,000 jobs nationwide. Mexico is the leading global exporter of tractor trucks, 95.1 percent of which is destined for the United States. Mexico is also the fourth-largest exporter of heavy-duty vehicles for cargo, and the second-largest export market after Canada, for U.S. medium and heavy-duty trucks.1

Aerospace Industry: Mexico is a world leader in the aerospace sector. In the last nine years, this sector grew 17.2% on average per year and moved from the tenth to sixth place among the countries that export the most to the aeronautical industry. There are currently more than 300 companies in the aerospace sector in Mexico. Of these, 80% are manufacturers, while 20% offer design & engineering services, as well as maintenance, repair and operations (MRO).2

Fastener Trade of Mexico in 2022 Through Q1 2023

2022-2023第一季 墨西哥扣件貿易統計

Construction Industry: The size of Mexico’s construction market was valued at US$175.9 billion in 2022 and is expected to grow at an AAGR of more than 2% during 2024-2027, supported by investment in the transport and energy sectors.3

Electronic Industry: Baja California is home to one of Mexico’s largest clusters of electronics manufacturers and suppliers, with over 200 companies—including Samsung, LG, and Foxconn—and 150,000 employees in the state. Since 2020, the consumer electronics market has continued to soar in development, reaching a record high sales volume in 2021 of over 178 million units.4

In a simple word, Mexico's trade agreements, such as the United StatesMexico-Canada Agreement (USMCA), have played a vital role in facilitating its fastener trade. These agreements promote trade liberalization and provide a stable framework for cross-border transactions. However, it is crucial to monitor any potential changes

in tariffs or trade policies that may affect the fastener trade landscape. The fastener industry in Mexico witnessed notable developments in 2022. The industry has embraced advanced manufacturing technologies, such as automation and robotics, to enhance productivity and meet international quality standards. Additionally, manufacturers have focused on sustainable practices and ecofriendly materials to align with global trends. Like many industries worldwide, the fastener trade in Mexico faced challenges due to the COVID-19 pandemic. Lockdowns, supply chain disruptions, and reduced demand from key markets affected the sector. However, Mexico's strong recovery measures and resilience allowed the industry to rebound quickly and adapt to the changing market dynamics. The following statistics prove this claim.

Fastener Trade in 2022

Throughout 2022, Mexico experienced steady growth in its fastener trade. (Table 1)

The key export destinations included:

• The United States that purchased 86% of the whole exported fasteners of Mexico,

• Canada that purchased 3% of the whole exported fasteners of Mexico and

• The rest of countries with 11% share.

The automotive industry was a major driver for fastener exports, as Mexico is a major production hub for global automakers.

Import Market Analysis: Mexico's fastener import market also witnessed significant activities in 2022. ( Table 2)

Q1 2023 Analysis

As the country continues to develop its infrastructure and manufacturing sectors, the demand for fasteners has increased. The key import sources included:

• The United States that represented 44.2% of the whole imported fasteners of Mexico,

• China that represented 17.5% of the whole imported fasteners of Mexico,

• Taiwan that represented 14.0% of the whole imported fasteners of Mexico,

• Germany that represented 5.4% of the whole imported fasteners of Mexico,

• Japan that represented 4.3% of the whole imported fasteners of Mexico,

• South Korea that represented 3.8% of the whole imported fasteners of Mexico and

• Other countries that represented 10.8% of the whole imported fasteners of Mexico.

The import market catered to various industries, including construction, manufacturing, and electronics.

While a detailed analysis of the first quarter of 2023 is not yet available, preliminary data suggest a constant trend in Mexico's fastener trade. The country's fastener exports and imports are expected to grow steadily, driven by the recovery of the global economy and increased demand from key industries. Continuous efforts to enhance manufacturing capabilities and expand trade relationships contribute to this positive outlook. (See Tables 3 & 4)

Conclusion

Mexico's fastener trade has exhibited resilience and showcased significant growth potential throughout the entirety of 2022 and the first quarter of 2023, even amidst the challenges posed by the COVID-19 pandemic. The country's strategic location, along with its skilled labour force and well-established supply chains, form a robust foundation for sustained success in the future. Moreover, Mexico's commitment to technological advancements has allowed it to stay competitive and meet the evolving demands of the fastener industry. However, it is important to acknowledge that challenges lie ahead. Evolving trade policies, uncertainties in the global economy, and intensifying competition from other manufacturing hubs necessitate careful monitoring and strategic planning. Looking forward, Mexico's fastener trade is poised for continued growth in the coming years. The country's advantageous position, skilled workforce, and established supply chains provide a strong foundation for future success.

1. https://www.trade.gov/country-commercial-guides/mexico-automotive-industry

2. https://www.mexico.bciaerospace.com/en-us/participants/aerospace-industry-in-mexico

3. https://www.globaldata.com/store/report/mexico-construction-market-analysis/

4. https://www.ivemsa.com/industries/electronics-manufacturing-in-mexico/

Copyright owned by Fastener World

Article by Sharareh Shahidi Hamedani

2

Table 3

(Unit: Thousand USD)

4

(Unit: Thousand USD)

Overlook on Chile

As expected, voters have rejected a proposal for a new constitution. Most thought that the proposed constitution was too vague, too cumbersome and too left-leaning. The rejection will be welcomed by business, but a renewed effort at constitutional reform in 2022-2023 will generate continued policy uncertainty. In this adverse political environment, and bearing in mind the difficult global economic outlook, Chile was likely to enter a technical recession late in 2022, with weakness extending into 2023 as business and consumer confidence remain low. President, Gabriel Boric, will shift policy towards the center, but an evenly divided Congress will slow progress on his legislative agenda. In the medium term, we expect that growth will be below its historical average, on the assumption that the next constitution will not be disastrous for business, but will result in more regulations and a lasting knock to business confidence1. It is reflected in their statistics, Chilean GDP growth was projected to decline from 11.7 percent in 2021 to 2.1 percent in 2022 and turn negative at 1.3 percent in 2023, before returning to an estimated potential rate of 2.5 percent over the medium term 2

Trend of Chilean Fastener Industry

The Import Sector

As it has been said, the industries are declining in Chile and it has affected the fastener industry in Chile as well. If we take the year 2017 as the basis, Chilean fastener import was 135.387 million US dollars, which increased by 20.4% to 162.949 million US dollars in 2018.

Chile’s imported fastener value increased slowly in 2019 and it was 164.151 million US dollars, 0.7% higher than 2018. Due to the Covid-19 and Chile’s economic problems, Chile’s fastener import declined 15.4% in 2020. In 2022, Chile’s fastener import was 138.905 million US dollars and its import experienced a 46.7% growth and reached over 203.812 million US dollars in 2021.

The Export Sector

Chile exported 9.889 million US dollars of fasteners in 2021, a growth of 6.5% compared to 2020. In 2020 the exported fastener value was 9.282 million US dollars. It should be noted that in 2020 the exported number declined 27.4% in comparison with 2019 and the value was 12.783 million US dollars. 2018 with the value of 9.173 million US dollars of exported fasteners was 39.4% lower than 2019 and 16.3% higher than 2017 with 7.885 million US dollars.

Fastener Statistics and Analysis of Chile in 2022

2022智利扣件進出口分析

Chile’s Partners for Fasteners

In Terms of Import

• China was the largest exporter of fasteners to Chile. In 2021, 42.8% of Chile’s imports were contributed by China, which means that Chinese exports to Chile were equal to 87.236 million US dollars. China exported 0.9% of its whole exported fasteners to Chile.

• USA was the 2nd largest exporter of fasteners to Chile. In 2021, 27.3% of Chile’s imports were contributed by the US, which means that US exports to Chile were equal to 55.621 million US dollars. The US exported 1.3% of its whole exported fasteners to Chile.

• Taiwan was the 3rd largest exporter of fasteners to Chile. In 2021, 5.7% of Chile’s imports were contributed by Taiwan, which means that Taiwan’s exports to Chile were equal to 11.644 million US dollars. Taiwan exported 0.2% of its whole exported fasteners to Chile.

• Other countries had 24.2% of Chile’s imports.

In Terms of Export

• Peru was the main buyer of Chilean fasteners. In 2021, Peru imported 4.263 million US dollars of fasteners from Chile, equivalent to 43.1 % of its total imports. Peru bought 2.7% of the exported fasteners from Chile.

• USA was the 2nd largest buyer of Chilean fasteners. In 2021, USA imported 1.255 million US dollars of fasteners from Chile, equivalent to 12.7 % of its total imports. USA bought 0.02% of the exported fasteners from Chile.

• Brazil was the 3rd largest buyer of Chilean fasteners. In 2021, Brazil imported 1.060 million US dollars of fasteners from Chile, equivalent to 10.7 % of its total imports. Brazil bought 0.1% of the exported fasteners from Chile.

• Panama was the 4th largest buyer of Chilean fasteners. In 2021, Panama imported 0.720 million US dollars of fasteners from Chile, equivalent to 7.3 % of its total imports. Panama bought 2.1% of the exported fasteners from Chile.

• Ecuador was the 5th largest buyer of Chilean fasteners. In 2021, Ecuador imported 0.668 million US dollars of fasteners from Chile, equivalent to 6.8 % of its total imports. Ecuador bought 1.6% of the exported fasteners from Chile.

• Other countries bought 19.4% of Chile’s exported fasteners.

The Fastener Situation in 2022

According to the statistics of the first 11 months of 2022, the global import of fasteners from Chile was 10.767 million US dollars, and this number for the end of 2022 was expected to reach 11.750 million US dollars. Table 1 shows the detailed data (numbers are in thousand USD).

According to the statistics of the first 11 months of 2022, the global export of fasteners to Chile was 224.632 million US dollars, and this number for the end of 2022 was expected to reach 245 million US dollars. Table 2 shows the detailed data (numbers are in thousand USD).

Last Word 3

Chile’s economy recovered swiftly from the pandemic on the back of exceptionally strong policy support, which eventually led to a significant overheating of the economy. Inflation has risen amid buoyant private consumption, further aggravated by the Russian aggression on Ukraine. Monetary authorities have acted in a timely and decisive fashion to contain inflation, and the fiscal stimulus is being withdrawn. Significant underlying challenges will have to be addressed over the next years, including stagnant productivity and high inequalities. Strengthening competition, reducing regulatory barriers and spending more on research and innovation will be key priorities for boosting productivity and investment, while pressing social needs call for more attention to how incomes and opportunities are distributed. Around a third of the workforce is in informal work, which limits their access to social protection benefits. Ensuring a well-defined set of benefits for all, with no distinction between formal and informal workers, will be a key. Expanding the access to high-quality early childhood education would improve educational outcomes and allow more women to work. Environmental challenges and risks loom large, but also provide significant opportunities for the future. The current high fossil content of the energy matrix contrasts with Chile’s strong potential in renewable energy generation.

1. https://country.eiu.com/chile

2. https://www.imf.org/en/News/Articles/2022/10/28/chile-staff-concluding-statement-of-the-2022-article-iv-mission

3. https://www.oecd.org/economy/chile-economic-snapshot/

Article by Sharareh Shahidi Hamedani / Copyright owned by Fastener World

Table 2. Chile’s Import in 2022

USD)