Emerging Fastener Markets Magazine No.10

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Special Feature Typhoon+ Hydraulic Bolt Tensioner

compiled by Fastener World

Innovation Alley 扣件新品大道

'Zero Chromate' Zinc Electroplating Technology Zero Chromate鋅電鍍技術 "Zero Chromate" developed by Kamiyama Tekkosho in Japan can provide surface treatment for the company's self-drilling and self-tapping screws or can be used for OEM purposes. Since Geomet and other surface treatment solutions may affect the fit of screw recess and the tapping performance, the company has developed the next-generation Zero Chromate technology which is chrome and cobalt free and highly resistant against corrosion.

Typhoon+液壓螺栓張力調整器 Nord-Lock Group is celebrating the launch of the new Typhoon+ hydraulic bolt tensioner which has been developed to meet the technical and environmental demands of the wind energy market, where high bolt load and restricted access applications are common challenges. Part of Nord-Lock Group, Boltight has developed a deep understanding of hydraulic bolt tensioning and is working hard to deploy the latest technology and advanced bolt tensioning solutions that permanently eliminate the risk of loose or over tightened bolts. The robust Typhoon+ design ensures reliability during frequent and repeated use necessary on wind turbine projects, both on and offshore, for low radial clearance applications.

The features include: 1.

A 1µm Zero Chromate coating layer covers the top of an 8µm zinc coating layer to form a coating layer as thin as just 9µm. Its anti-corrosion performance has been confirmed in a salt-spray test to be 10 times better than that of a unichrome coating layer.

2.

At almost the same cost as Trivalent chromium.

3.

Value of application on the cusp between uni-chrome coat and Geomet.

4.

Thin, environment-friendly and corrosion-resistant.

The new design offers: •

Ease of use – a fast automatic spring-return design using a single reaction allows a full return to zero stroke piston retraction, and removes the need for manual input.

•

I mproved sea l tech nolog y - reduc es sea l changeouts and enhances general performance throughout the high cycle usage.

•

Safety - Over-stroke prevention removes the possibility of over-stroking the pistons. Internal fail-safe technology keeps the tensioner on the bolt in the event of puller bar failure, ensuring user safety.

•

High Life Cycle - Long service intervals, not restricted by a fixed number of cycles thanks to high grade material puller bar.

•

Low Maintenance – due to an improved springloaded auto engagement gear driven nut rotating socket with a geared drive, and it's easy to use.

•

Durability - a unique surface finish provides long lasting protection in harsh environments.

Prehold Washer Prehold墊片 "Prehold Washer" by Japanese TAIYO Stainless Spring is used for temporary fixing and improves operating efficiency. It is made of stainless steel, corrosion resistant and features high strength. It allows a bolt to be inserted through its either side and provides ease of bolt installation onto the automotive or machine components. The bolt and the components are fastened through spring reaction force.

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Special Feature SET-3G™ High-Strength Adhesive

Screws Resistant to Heat and Impacts of Chemical Solutions

SET-3G™高強度黏著劑

高耐熱與耐藥品的螺絲

Simpson Strong-Tie, the leader in engineered structural connectors and building solutions, announced that its SET3G™ high-strength epoxy anchoring adhesive is code listed for anchoring installations in submerged holes and in saturated concrete or water-filled holes.

NBK (Nabeya Bi-tech Kaisha) has successfully developed a carbon-silicon made special screw with high hardness and resistance against heat and the impacts of chemical solutions. The screw can apply to the next-generation semiconductor industry and aerospace industry and will be mass-produced starting at the end of this year. The revenue generated from this type of screws is expected to reach JPY 100 million.

Formulated to yield superior performance in threaded rod anchor and rebar dowel installations in cracked and uncracked concrete, SET-3G high-strength anchoring adhesive is the latest innovation in epoxy anchoring adhesives from Simpson StrongTie. The two-component, one-to-one-ratio, epoxy-based anchoring adhesive formula dispenses in a uniform gray color to match surrounding concrete surfaces, and can be easily installed in downward, horizontal and overhead orientations. In addition to providing exceptional bond strength, SET3G adhesive has been proven to outperform other products on the market. SET-3G is code listed to work with the Speed Clean™ DXS dust extraction system, which saves hole preparation time and complies with updated OSHA Silica Dust Compliance Regulations to keep workers safe from hazardous airborne dust.

The automotive industry i s i n g row i n g ne e d fo r special screws. NBK eyed the l ig ht weig ht si l ic on material that is resistant against heat and the impacts of chemical solutions, and successfully developed the first silicon special screw on the market. NBK worked with a Ceramics Research Institute in Gifu Prefecture of Japan to find the best blend of carbon and silicon and gave birth to the product.

NBK made its way into the special screw industry in 1999. Its order growth was mostly attributed to the semiconductor industry. Its business recorded a 10% growth in 2020.

QUICKLOC® Quick-release System

CFRTP Light-Weight Wrenches

QUICKLOC®快速鎖固系統

碳纖維製超輕量扳手

The QUICKLOC ® clamping, rotation and pressure locks create repeatedly releasable joints.

Tosh i n Elec t r ic rol led out t he c a rbon f iber reinforced thermoplastic (CFRTP) "CARBLACK Double Wrench Set" and "CARBLACK Monkey Wrench". CFRTP is known for being light-weight, rigid and resistant against static electricity.

Easy to fit and even easier to operate –the right quick-release system also allows repeated opening and closing. QUICKLOC®

by Böllhoff is the perfect solution for components that are frequently used or serviced.

QUICKLOC® is a high-strength system which is easy to use.

The quick release fasteners are maintenance-free, vibrationresistant and have a captive seal to prevent loss. It comprises a hardened steel locking bolt, a plastic retainer and a spring steel slip-on lock bottom. In addition to its standard models, it offers custom designs as well.

QUICKLOC® clamping, rotation and pressure locks are used in all industrial sectors where repeatedly releasable joints for fast assembly are required. In industries including rail transport, the automotive sector, medical technology, compressor technology and heating engineering as well as aerospace.

The double wrench and monkey wrench come with the following features: 1.

Lighter by one third than iron-made wrenches.

From 500 down to 165 grams.

2.

Rust-proof.

3.

Resisting static electricity. No spark from collision or friction. Preventing explosion.

4.

Not harming electroplated products.

The middle section of the double wrench comes with a press-fit design allowing the user to join multiple wrenches into a wrench set that is portable and spacesaving. The monkey wrench can open its jaw by 30 mm in maximum and has engraved scales.

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Emerging Fastener Markets News News from Emerging Markets

compiled by Fastener World

全球新興市場新聞 Industry Development Russia Imposes 15% Provisional Export Tariffs on Certain Metals 俄羅斯對金屬原料課徵15%臨時出口稅 The Government of Russian Federation has recently imposed an export tariffs of at least 15% each on steel, nickel, aluminum, and copper since Aug. 1st, 2021 and this measure will officially come into effect through the end of this year. According to the measure, copper is subject to a tariff rate of US$1,226 per ton; nickel is subject to a tariff rate of US$2,321 per ton; aluminum is subject to a tariff rate of US$254 per ton; however, the rates for steel products differ from each other, and in the “hot rolled steel” category, it is at least US$115 per ton.

The measure is aimed at protecting national defense and construction industries in Russia from the impact of hiking material costs. As the aluminum output of United Co Rusal International represents around 10% of the global total and the nickel output of Norilsk Nickel represents around 20% of the global total, and Russia itself is also the world’s 3rd largest steel exporter (mainly shipping to Europe), it is expected that such a measure will cause a significant impact on the global metal supply market.

Some analysts also estimated that, since several consumers in Taiwan and Asian countries import steel scrap, semi-finished steel billets, and hot rolled steel from Russia, plus the recent plunge of China’s export, the capacity to supply the Asian market may become tighter.

Certain Chinese Steel Fasteners Subject to Import Registration in the EU Since 06/17 中國輸歐盟鋼鐵扣件06/17日起實施進口登記

The customs authorities of all EU member states are hereby directed, u n d e r A r t i c l e 14 (5 ) of Regulation (EU) 2 016/10 36, to ta ke the appropr iate steps to register imports of certain fasteners of iron or steel, other than of stainless steel, i.e. wood screws (excluding coach screws), self-tapping screws, other screws and bolts with heads (whether or not with their nuts or washers, but excluding screws and bolts for fixing railway track construction material), and washers, so that measures may be applied against those imports retroactively from the date of such registration, provided all conditions set out in the basic Regulation are met.

These products are currently falling under CN codes 7318 12 90, 7318 14 91, 7318 14 99, 7318 15 58, 7318 15 68, 7318 15 82, 7318 15 88, ex 7318 15 95 (TARIC codes 7318 15 95 19 and 7318 15 95 89), ex 7318 21 00 (TARIC codes 7318 21 00 31, 7318 21 00 39, 7318 21 00 95 and 7318 21 00 98) and ex 7318 22 00 (TARIC codes 7318 22 00 31, 7318 22 00 39, 7318 22 00 95 and 7318 22 00 98) and are originating in the People’s Republic of China.

Registration shall expire nine months following the date of entry into force of this Regulation. All interested parties are invited to make their views known in writing, to provide supporting evidence or to request to be heard within 21 days from the date of publication of this Regulation. This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

USITC Makes Determinations in Five-Year (Sunset) Reviews Concerning Steel Nails from S. Korea, Malaysia, Oman, Taiwan, and Vietnam 美國國貿委員會裁定續課南韓、馬來西亞、阿曼、台灣和 越南鋼釘反傾銷稅5年 The U.S. International Trade Commission (USITC) determined that revoking the existing antidumping and countervailing duty orders on imports of steel nails from S. Korea, Malaysia, Oman, Taiwan, and Vietnam would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. As a result of the Commission’s affirmative deter m i nations, the ex isti ng orders on imports of this product from S. Korea, Malaysia, Oman, Taiwan, and Vietnam will remain in place.

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News from Emerging Markets

China Launches AD Sunset Review on EU and UK Iron and Steel Fasteners 中國對歐盟和英國碳鋼扣件啟動期終反傾銷 複審調查 On April 28, 2021, Ministry of Commerce of PR China received the application from the Fastener Subdivision of China General Machine Components Industry Association (CMCA) on behalf of Chinese iron and steel fastener industry for a 5-year sunset review on the antidumping measure against certain iron and steel fasteners originating in the EU and UK. CMCA alleged that if the antidumping measure is terminated, the dumping of certain iron and steel fasteners originating in the EU and UK may continue and may continuously lead to the material injury to local Chinese industries. As a result, CMCA made a request that Ministry of Commerce should launch a sunset review investigation and maintain the antidumping measure.

Ministry of Commerce has determined to launch the sunset review investigation against certain iron and steel fasteners originating in the EU and UK since June 29, 2021. During the investigation, the previously announced antidumping rates and products involved will remain effective (note: The current AD rates for certain iron and steel fasteners imported from the EU and UK are between 6.1 % and 26.0%.

However, Koninklijke Nedschroef Holding B.V. and its affiliated companies are subject to a rate of 5.5%).

The investigation period for antidumping is from 2020/01/01 through 2020/12/31, while the investigation period for material injury to the local industry is from 2016/01/01 through 2020/12/31.

Products involved in this investigation are: certain iron and steel fasteners, which include wood screws, self-tapping screws, screws and bolts (whether or not with their nuts or washers, but excluding screws and bolts with their shanks less than 6mm for fixing railway track), and washers. Products involved do not include nuts and other fasteners used for the maintenance and repair of commercial aircraft.

The tariff codes of products involved are 73181200, 731814 0 0, 7318159 0, 73181510, 7318 210 0, a nd 73182200.

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All interested parties are invited to register their participation in the sunset review through the Trade Remedy and Investigation Bureau of Ministry of Commerce of PR China within 20 days from the date of publication of this Notice. The investigation starts from June 29, 2021 and should come to an end before June 28, 2022.

Vietnam's Steel Export to EU up 5 Folds in First 5 Months of 2021 2021年前5月越南鋼鐵輸往歐盟成長5倍 According to the data of Vietnamese Customs, Vietnam's steel export reached 980 thousand tons at an export value of USD 833 million this May, down 4% in volume and up 8.2% in value from this April. The total export volume reached 4.88 million tons in the first 5 months of 2021 at a total export value of USD 3.61 billion, up 61.6% in volume and up 117% in value from the same period last year. The EU, China, Cambodia, Malaysia and Mexico are the top 5 destinations for Vietnamese steel products. In the first 5 months of 2021, Vietnam grew 500% (at 713 thousand tons) in steel export to the EU, 200% to China (at 1.1 million tons), and 250% to Mexico (at 293 thousand tons).

The significant growth in Vietnam's steel export to the EU could be attributed to the European Union-Vietnam Free Trade Agreement (EVFTA). This also means that Vietnamese companies have acquired standardized production lines and are capable of meeting the stringent requirements and demand by the countries they export to.

Indonesia Seeks Collaboration with Foreign Investors to Establish Its Own EV Supply Chain 印尼積極發展電動車產業鏈 鎖定外資 Indonesia has been devoted to developing a complete EV supply chain these years. The country seeks to collaborate with American, Japanese, South Korean and Chinese investors and sets goals to make 20% of cars produced in Indonesia be electric by 2025 and become a global EV and EV battery manufacturing hub. Indonesia Investment Coordinating Board announced LG Energy Solution will invest USD 9.8 billion to work with an EV battery group of 4 Indonesian companies (PLN, Pertamina, Aneka Tambang and MIND ID) to form a complete EV battery supply chain.

Battery production is the key to EV industrial development.

Indonesia is rich in materials including cobalt, nickel, manganese and other rare metals that allow for establishing a price-competitive EV industry. Joko Widodo (President of Indonesia) has set goals for the nation to start producing EV in 2022, make the proportion of components used in any EV produced in Indonesia reach at least 35% by 2023, and make EV account for 20% of all Indonesian car production by 2025.

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News from Emerging Markets

Companies Development

China Spacesat Provides Titanium Alloy Fasteners for Spacecrafts Nitto Seiko's 2nd Indonesia Plant Now Offers Vertically Integrated Production 日本日東精工印尼二廠完成一條龍生產體制 PT. NITTO ALAM INDONESIA (invested by Japanese Nitto Seiko) starting with 30 employees was founded in 1985 with the total investment value of 700 million Rupiah.

Its second plant inaugurated in Bekasi on August 2018 is dedicated to introducing automated production to provide automotive and other industry clients with high quality and shorter lead times. The so-called automated production system means that the plant has the equipment for heading, threading, heat treatment, electroplating, inspection and packaging. It took the plant 3 years to establish the vertically integrated production system, helping shorten the lead time by around 30%. The plant will target the Japanese manufacturing cluster in Bekasi on the outskirts of Jakarta, and provide them with screws, bolts, anchors and other special cold forged products.

China Spacesat released a financial report for 2020 which shows the operating income at RMB 7.007 billion (up 8.42%), total profit at R M B 477 million (up 14.92%), net profit attributable to shareholders at RMB 354 million (up 5.34%), and EPS at RMB 0.3.

The company specializes in aerospace manufacturing and satellite applications. It has R&D and manufacturing bases in Beijing, Shenzhen, Xi'an and other places, and is capable of developing critical systems and core components. In aerospace manufacturing, it provides navigation receivers and fasteners for spacecrafts, including aerospace fasteners made of titanium alloy, high-temperature alloy, aluminum alloy and steel. It can also provide inspection, heat treatment and surface treatment.

In satellite applications, the company focuses on satellite communication, navigation and remote sensing.

The company has added 263 patents and has 2,983 people in charge of R&D and technology management who account for 73.17% of all employees.

Tong Ming to Achieve 10,000 Clients and All-time Shipment This Year

SOUTHCO Expands India Operations Footprint

東明今年客戶數突破萬家 全年出貨量衝新高

SOUTHCO® is pleased to announce the official opening of its expanded facility in Ranjangoan, Pune, India. The 20,000 square foot expansion, which commenced in 2019, has tripled available office space and doubled the manufacturing space and distribution footprint, positioning Southco for future growth in the fastest growing market in the world.

Chinese stainless steel fastener distributor Tong Ming Enterprise said on April 14 that its number of clients will increase by more than 25% to over 10 thousand companies.

The monthly shipment is expected to keep at around 10 thousand tons and the annual shipment at an all-time 100200 thousand tons.

Despite the pandemic last year, the company benefits f rom i nc reased dema nd i n i n f rast r uct u re, ra i lway transportation, and automated equipment for intelligent manufacturing, and sees its Q1 shipment at above 10 thousand tons.

Tong Ming's clients increased from 5,000 to 8,000 companies and could continue this growth to breach 10 thousand companies.

T he c ompa ny does not have enough capacity now as a result of a growing number of clients a nd s t a i n le s s s t e el f a s t ener applications. It expects to add 100 thousand tons to its capacity in 3 to 5 years.

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中國衞星為太空船提供鈦合金緊固件

SOUTHCO拓展印度運作據點

After a decade of phenomenal performance in the Indian market, Southco India’s increased production capacity, coupled with continued investment in sales, engineering and marketing resources will allow Southco to better serve its local customers.

Southco will continue to bring new manufacturing technologies to India and produce more parts locally to support the “Make in India” initiative of the Indian Government.

“T he expansion of our operations footprint in India contributes to Southco’s strategy of d r iv i ng g loba l busi ness growth” said Prakash T. John, General Manager of Southco I nd ia. ” T h i s i s not on ly a n opportunity to bring more jobs to the area, but it is a longterm commitment of Southco to deliver more value to our customers and meet the growing needs of the Indian market.”

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News from Emerging Markets KPF Acquires Japan's Ministry of Land, Infrastructure and Transport's Ministerial Certification KPF高動力螺栓取得日本國土交通部認證 K P F a n n o u n c e d o n Fe b r u a r y 23rd, 2021 that it has completed the final acquisition of the ministerial c er t i f i c at io n fo r it s h i g h - p ower bolts f rom the M i n istr y of La nd, Infrastructure, and Transport of Japan. KPF has proven expertise for fasteners and parts for construction, heavy equipment, and petrochemical plant since 1963. With advanced technology and experiences for forging, KPF entered the automotive part market.

KPF also operates global affiliates in Vietnam and China.

Association World Steel Association Predicts Global Steel Demand to Grow 5.8% 世界鋼鐵協會預測全球鋼材需求增加5.8% World Steel Association (WSA) predicts that the global steel demand will increase by 5.8% to 1.874 billion tons in 2021 and go up 2.7% to 1.924 billion tons in 2022.

Vaccinations in many countries worldwide have helped slow down the pandemic. Although some economic measures imposed by certain countries have taken effect, advanced countries are still expected to spend several years to recover to the pre-pandemic level.

On China alone, its local steel demand is expected to increase by 3% to 1.024 billion tons in 2021 and go up 1% to 1.035 billion tons in 2022. The effect of local market stimulus is waning, so the growth margin is on a downward trend. On the other hand, the steel demand in advanced countries is expected to increase by 8.2% to 371 million tons in 2021 and go up 4.2% to 386 million tons in 2022.

Production & Sales Results for 2020 by MAA 馬來西亞汽車協會報告2020年汽車 產銷量 According to Malaysian Automotive Association (MAA), a higher-than-expected performance in the last quarter of 2020 helped reduce the expected decline in the total sales of the whole 2020. On the whole, the total sales registered in 2020 were 529,434 units, a decrease of 74,847 units or 12.4% compared to 2019 with 604,281 units. Despite a double-digit drop, it was nonetheless a good achievement for the local Malaysian automotive industry given the extremely challenging environment. It was higher than what MAA had forecasted (at 470,000 units). The sales tax exemption a n nou nc ed by t he loc a l gover n ment effective from 15 June 2020 boosted sales in the second half of the year.

Production of new vehicles in 2020 also decreased 86,446 units or 15% to reach a total of 485,186 units compared to 571,632 units in 2019. The industry lost over two months of vehicles production in 2020.

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Industry Focus

U.S Fastener Trade with Latin America

During 2020 and Q1 2021

by Sabrina Rodriguez

2021第一季 美國與拉美扣件貿易分析

Data note: The data for this ar ticle is derived from the US Census trade statistics.

US Census trade statistics analyze import and export on all modes of transportation. That value is calculated in USD by general CIF for imports and FOB for exports. Fasteners in this article are defined as any product under HS Code 7318 (screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers and similar articles of iron or steel).

It is no surprise that the U.S. supply chain was shaken to its core during the height of the pandemic due to a decline in the production of goods that remained in high demand. With worldwide shortages and disruptions in the supply chain, companies were forced to find alternate sourcing, some which were with countries in their immediate region to avoid long shipping delays. It is believed that the pandemic in 2020 caused even the most developed and fluid supply United States - Import chains to realize they were in fact more vulnerable than they thought.

2020 Country of Origin General Total Value CIF (USD)

General Quantity

%

MEXICO

114,068,791

88.89

13,485,743

85.04

BRAZIL

12,794,780

9.97

2,019,861

12.74

ARGENTINA

685,046

0.54

140,423

0.89

COLOMBIA

211,867

0.17

33,675

0.22

PANAMA

202,704

0.16

134,135

0.85

PERU

126,941

0.10

19,040

0.13

COSTA RICA

81,464

0.07

2,094

0.02

CHILE

74,663

0.06

5,095

0.04

HONDURAS

43,268

0.04

15,938

0.11

ECUADOR

19,403

0.02

1,151

0.01

GUATEMALA

14,845

0.02

1,493

0.01

EL SALVADOR

6,625

0.01

100

0.01

BELIZE

042

%

Total

4,796

0.01

113

0.01

128,335,193

100.00

15,858,861

100.00

Due to the vigorous and (at times) volatile supply chain, U.S. companies are looking to diversify their foreign suppliers while Latin American manufacturers are making efforts to expand their foreign partners in North America. Has Latin America shown to be a promising region for U.S. companies to source new trading partners? Does the U.S. export a significant number of fasteners into countries in Central and South America? Has Mexico remained one of the most prominent trading partners of the U.S.?

2020 U.S. Trade with Latin America During 2020, Latin America exported over 128 million USD worth of fasteners into the U.S. market. Mexico is one of the biggest producers of fasteners in the Americas making it the leading supplier of fasteners to the U.S. During 2020, the U.S. imported over 114 million USD which accounts for nearly 89% of the imports of fasteners from Latin America. Brazil accounts for the second highest volume of fasteners to the U.S.; however, their totals are nowhere near those of Mexico. In 2020, Brazil exported a total of 12.7 million USD worth of fasteners to the U.S. Other

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043

Industry Focus United States - Fastener Export Country of Destination

2020 FOB Value (USD)

%

Quantity

%

MEXICO

1,216,036,841

87.19

167,065,567

91.36

BRAZIL

90,407,063

6.49

9,125,876

5.00

CHILE

30,385,932

2.18

2,120,429

1.16

COLOMBIA

15,356,551

1.11

791,307

0.44

PERU

14,901,348

1.07

1,118,751

0.62

COSTA RICA

8,017,959

0.58

470,422

0.26

ARGENTINA

7,519,449

0.54

871,398

0.48

EL SALVADOR

3,014,690

0.22

242,606

0.14

PANAMA

2,300,830

0.17

168,479

0.10

HONDURAS

2,090,821

0.15

267,575

0.15

GUATEMALA

1,518,572

0.11

212,573

0.12

ECUADOR

1,037,642

0.08

112,037

0.07

VENEZUELA

677,318

0.05

22,844

0.02

NICARAGUA

590,345

0.05

112,161

0.07

BELIZE

345,652

0.03

105,545

0.06

SURINAME

323,124

0.03

18,884

0.02

URUGUAY

252,295

0.02

34,002

0.02

PARAGUAY

39,439

0.01

7,695

0.01

1,394,815,871

100.00

182,868,151

100.00

Total

Top Country of Destination 6.5%

87.5%

MEXICO BRAZIL CHILE COLOMBIA PERU COSTA RICA ARGENTINA EL SALVADOR PANAMA HONDURAS

countries in South America such as Argentina, Colombia, Peru, and Chile account for less than 1% of the total value of fasteners exported to the U.S. in 2020. Other countries in South America such as Paraguay, Uruguay, Bolivia, and Venezuela are not in the fastener market.

Countries in Central America combined do not even make up 1% of fastener trade from Latin America to the U.S. While Panama, Costa Rica and Honduras export the most quantity and value to the U.S., they collectively do not make a large enough impact to be seen as major trading partners. El Salvador and Belize are the two countries in Central America that export the least number of fasteners to the U.S. from the Latin America region. This region proves to be attempting to enter the fastener market, specifically with the U.S., but might be more of a relevant trading partner with its neighboring countries.

The top 3 subsets of 7318 that are exported from Latin America to the U.S. in the highest value are 731815, 731816 and 731829. 731815 accounts for over 102 million USD in value which is more than all the other subsets combined. 731816 being the second highest subset of fasteners accounts for over 35 million USD, followed by 731829 which accounted for over 8 million USD. Subsets 731823, 731812, 731813 and 731811 accounted for a combined total of less than 2 million USD. Beginning in the month of April 2020, fastener imports from Latin America began to decline. In June 2020, the total quantity was at the lowest, but then began to increase in July followed by another slight decrease in August. October 2020 was the month with the highest volume of 2020, but a few months later in January 2021 there was another sudden decline of volume. It is evident that COVID-19 and the global pandemic affected trading patterns of fasteners between the U.S. and Latin America.

Top Product HS

26.3%

5.8% 9.2% 18.8%

22.7%

THREADED SCREWS AND BOLTS OTHERS, WITH OR WITHOUT THEIR NUTS THREADED SCREWS AND BOLTS OTHERS, WITH OR WITHOUT THEIR NUTS NUTS, THREADED. OF IRON OR STEEL OTHER NON-THREADED ARTICLES (FASTENERS) OF IRON OR STEEL, OTHERS WASHERS OTHER THAN LOCK WASHERS, IRON OR STEEL COTTERS AND COTTER PINS, OF IRON OR STEEL THREADED ARTICLES OF IRON OR STEEL OTHERS (NOT BOLTS, NUTS OR SCREWS) THREADED SCREWS AND BOLTS OTHERS, WITH OR WITHOUT THEIR NUTS SELF-TAPPING SCREWS, THREADED, OF IRON OR STEEL RIVETS OF IRON OR STEEL

United States - Fastener Export Product HS

044

7318159000 - Threaded Screws And Bolts Others, With Or Without Their Nuts 7318152000 - Threaded Screws And Bolts Others, With Or Without Their Nuts 7318160000 - Nuts, Threaded, Of Iron Or Steel 7318290000 - Other Non-Threaded Articles (Fasteners) Of Iron Or Steel, Others 7318220000 - Washers Other Than Lock Washers, Iron Or Steel 7318240000 - Cotters And Cotter Pins, Of Iron Or Steel 7318190000 - Threaded Articles Of Iron Or Steel Others (Not Bolts, Nuts Or Screws) 7318155000 - Threaded Screws And Bolts Others, With Or Without Their Nuts 7318140000 - Self-Tapping Screws, Threaded, Of Iron Or Steel 7318230000 - Rivets Of Iron Or Steel 7318210000 - Spring Washers And Other Lock Washers, Of Iron Or Steel 7318110000 - Coach Screws, Threaded, Of Iron Or Steel 7318130000 - Screw Hooks And Screw Rings, Threaded, Of Iron Or Steel 7318120000 - Wood Screws Other Than Coach Screws, Iron Or Steel, Threaded Total

FOB Value (USD) 356,753,177 307,558,772 254,902,817 124,155,222 78,775,752 61,275,804 48,518,700 44,472,091 41,882,148 36,504,162 20,407,734 7,455,519 7,121,421 5,032,552 1,394,815,871

Emerging Fastener Markets no.10/2021

2020 % 25.58 22.06 18.28 8.91 5.65 4.40 3.48 3.19 3.01 2.62 1.47 0.54 0.52 0.37 100.00

Quantity 59,405,968 47,967,360 26,755,546 10,132,733 8,693,136 5,233,895 4,106,906 6,002,409 6,020,709 4,383,646 1,174,919 1,040,507 919,674 1,030,743 182,868,151

% 32.49 26.24 14.64 5.55 4.76 2.87 2.25 3.29 3.30 2.40 0.65 0.57 0.51 0.57 100.00

Emerging Fastener Markets no.10/2021

045

Industry Focus Latin America appears to have a greater demand for fasteners which explains why the U.S. exported over 1.3 billion USD in 2020 alone. Of those fastener exports, Mexico accounted for 1.2 billion USD which makes up over 87% of the total value of fasteners exported to Latin America. Brazil, Chile and Colombia account for about 10% of the total value of fastener exports, while countries such as Ecuador, Venezuela, Nicaragua and Belize all account for less than 1% of foreign trading partners for the U.S. Of the subsets exported from the U.S. to Latin America in the highest value and quantity are 7318152000, 7318159000 and 731816000.

2021 Fastener Trade with Latin America During the first quarter of 2021, all Latin American countries have exported a combined total of over 37 million USD to the U.S, of which 90% was from Mexico. Mexico accounted for over 33 million USD of fasteners to the U.S, while all other countries combined totaled the other 10%, or 4 million USD. Brazil trails Mexico as the second largest trading partner and accounts for 3.4 million USD exports to the U.S., followed by the other 7 countries in Latin America that exported fasteners to the U.S. during the first quarter of 2021. Of these exports from Latin America to the U.S., over 66% were of subset 731815, 16.5% of 731816 United States - Import and 5.9% of subset 731822.

The U.S. exported a total of 1.8 billion USD of fasteners to countries within Latin America between January 2020 and March 2021. During March 2021, the U.S. exported the highest amount (over 147 million USD), followed by January 2021 which accounts for 145 million USD. For comparison, during March 2020 the U.S. exported 133 million USD which is roughly 14 million USD less than was exported in March 2021. After seeing these totals, it is believed that U.S. supply of fasteners is increasing an exponential amount which is in turn allowing fastener trade with Latin America to increase.

Country of Origin

2021 - Q1

General Total Value CIF (USD)

General Quantity

%

%

MEXICO

33,394,394.00

90.19

4,068,789.00

85.53

BRAZIL

3,417,611.00

9.23

635,399.00

13.36

ARGENTINA

109,209.00

0.30

20,515.00

0.44

PANAMA

30,970.00

0.09

26,745.00

0.57

CHILE

30,663.00

0.09

2,392.00

0.06

COLOMBIA

18,212.00

0.05

2,344.00

0.05

EL SALVADOR

13,610.00

0.04

134.00

0.01

%

General Quantity

%

66.71 16.56 5.90 4.92 2.10 1.81 1.06 0.57 0.40 0.02 0.01 0.01 100.00

3,741,033 575,961 91,328 187,246 52,875 47,222 22,822 21,530 16,362 823 69 2 4,757,273

78.64 12.11 1.92 3.94 1.12 1.00 0.48 0.46 0.35 0.02 0.01 0.01 100.00

While the modern world just finished witnessing what BELIZE 8,778.00 0.03 950.00 0.02 could be considered an anomaly in global trade, we are COSTA RICA 4,304.00 0.02 5.00 0.01 beginning to see more stable supply chains in 2021. Supply 37,027,751.00 100.00 4,757,273.00 100.00 Total as well as demand is beginning to increase, although there are still an overwhelming number of shortages of specific commodities. As supply chain leaders continue Top Product HS(6) to analyze their markets closely, it is inevitable for them to diversify their foreign trading THREADED SCREWS AND BOLTS OTHERS, WITH OR WITHOUT THEIR NUTS OR WASHERS, OF IRON OR STEEL partners to become stronger not only in their NUTS, THREADED, OF IRON OR STEEL market but also to become less vulnerable in WASHERS, OTHER THAN LOCK WASHERS, OF IRON OR STEEL the future. Regions such as Latin America NONTHREADED ARTICLES (FASTENERS) OTHERS, OF IRON OR STEEL can be seen as emerging markets with extreme THREADED ARTICLES OF IRON OR STEEL OTHERS 16.6% SPRING WASHERS AND OTHER LOCK WASHERS, OF IRON OR STEEL potential when it comes to manufacturing of 66.7% COTTERS AND COTTER PINS, OF IRON OR STEEL fasteners, which is why more companies should SELF-TAPPING SCREWS, THREADED, OF IRON OR STEEL look to Latin America for potential trading RIVETS OF IRON OR STEEL partners.

Other United States - Import 2020 Product HS (6)

046

731815 - Threaded Screws And Bolts Others, With Or Without Their Nuts Or Washers, Of Iron Or Steel 731816 - Nuts, Threaded, Of Iron Or Steel 731822 - Washers, Other Than Lock Washers, Of Iron Or Steel 731829 - Nonthreaded Articles (Fasteners) Others, Of Iron Or Steel 731819 - Threaded Articles Of Iron Or Steel Others 731821 - Spring Washers And Other Lock Washers, Of Iron Or Steel 731824 - Cotters And Cotter Pins, Of Iron Or Steel 731814 - Self-Tapping Screws, Threaded, Of Iron Or Steel 731823 - Rivets Of Iron Or Steel 731812 - Wood Screws Other Than Coach Screws, Threaded, Of Iron Or Steel 731811 - Coach Screws, Threaded, Of Iron Or Steel 731813 - Screw Hooks And Screw Rings, Threaded, Of Iron Or Steel Total

Emerging Fastener Markets no.10/2021

General Total Value CIF (USD) 24,698,173 6,128,401 2,181,157 1,821,051 775,758 669,314 389,259 209,902 145,416 3,996 3,317 2,007 37,027,751

047 Emerging Fastener Markets no.10/2021

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Emerging Fastener Markets no.10/2021

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050 Emerging Fastener Markets no.10/2021

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062 Emerging Fastener Markets no.10/2021

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068 Emerging Fastener Markets no.10/2021

Company Focus

King Yuan Dar Enters ASEAN & Serves Global Automotive Clients with New Thailand Plant 金元達泰國新廠打入大東協 服務全球汽車客戶

by Dean Tseng, Fastener World

King Yuan Dar, a specialized heat treatment equipment manufacturer in Taiwan, goes against the tide with sales figures doubling up this year. Mr. Tseng Chang Lung, general manager, said he just happened to strike a large deal valued at tens of millions of New Taiwanese dollars (NTD) on the day of the interview with Fastener World Magazine. Growth is unstoppable for this company that has gone up a notch by setting up a new plant in Thailand to mark a new milestone for 2021. Needless to say, the company is much favored by clients.

Eyes on the Automotive Market Putting Roots Down in Thailand & Tapping into ASEAN The company invested USD 10 million in a plant spanning 30 thousand square meters in Thailand. The plant can house up to 120 people and mainly serves the automotive market including electric vehicles. The general manager said the Thailand plant can provide top-notch heat treatment and surface treatment on automotive components and fasteners, as well as provide related customized machines of the quality and service level on par with the headquarters’. The Thai automotive market will be the stepping stone for the company into the whole ASEAN market. Global clients are welcome to purchase directly through the Thailand plant in addition to the headquarters.

4 Equipment Products Highlighted for 2021 •

Heat Retrieval Type Tempering Furnace

•

Cyclic Continuous Vacuum Spheroidizing Furnace

•

Cyclic Continuous Vacuum High Temperature Sintering Furnace

•

Cyclic Continuous Box Vacuum Carburizing Furnace

Including 8 Features: 1.

Thermal Recyclable & Reusable

2.

Increased capacity & stable quality

3.

Reduced gas consumption in the furnace

4.

High Efficiency/Eco-friendly/Energy-saving

5.

Batch production management

6.

Combining remote visual management & intelligent AI monitoring

7.

Intelligent equipment to automatically record capacity, power and gas consumption

8.

Free of bumps, mixed materials and mesh belt

Future for King Yuan Dar Only Turns Brighter in 2022 From 2020 to this date, market demand for the company's heat treatment equipment continues to increase. The general manager already foresees continual growth in 2022. Plus, he will roll out a newly-developed continuous box furnace at the end of this year which he hopes will add new vigor to the annual performance for King Yuan Dar.

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Contact: Mr. Tseng Chang Lung E-mail: gold.dollar@msa.hinet.net Emerging Fastener Markets no.10/2021

Emerging Fastener Markets no.10/2021

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072 Emerging Fastener Markets no.10/2021

Company Focus

New Power-Saving Cap Nut Welding Machine for Speed & Minimal Cost

Dahching Electric Industrial Co., Ltd.

大慶電機推出三相變頻直流全自動螺母袋帽焊接機 -省電、提升速度與成本效益

by Dean Tseng, Fastener World Based in Tainan City of Taiwan, Dahching founded in 1979 is an experienced and specialized resistance welding machine manufacturer to meet your need for spot welding, projection welding, seam welding, flash butt / butt welding and heating / upsetting. The company’s machines are available with Single Phase or Three Phase AC Inverters, DC Capacitor Discharge, and Three Phase Rectified DC (Direct Current) solutions with distinctive welding penetration.

Introducing All-New Cap Nut Welding Machine Taiwan is the world’s second largest fastener exporter, and therefore a high market demand for low-price fasteners is best suited with automated production for less labor cost and faster manufacture. Dahching refined its welding machines and successfully developed 200kVA Three Phase Inverter DC Fully Automatic Cap Nut Welding Machine which saves up to 70% of power. It has a multi-position turntable that completes welding a M4M20 cap nut within 3 seconds, making for a speed of 35-40 pcs per minute. For operators’ safety and convenience, it comes with protective accessories such as cover and light curtain as well as human-machine interface and fool-proof design. The company also offers online customer service to swiftly solve clients’ problems.

Your Tailor-Made Welding Machine Partner Dahching is capable of customizing welding machines to specific demands of valued customers. The machines can be tailored to work on shock absorbers, brake shoes, cap nuts, fuel tanks, gratings, bus bars for smelting pots, air conditioners and refrigerator compressors, etc.

For long, Dahching’s products have been centered on technological innovation and betterment that is manifested through website and catalog update, user-friendly customer service interface, as well as developing intelligent automated welding machines to continue creating brand value and competitiveness.

Contact: Lily Wang, Sales Manager Email: service@dahching.com

074 Emerging Fastener Markets no.10/2021

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075

Industry Focus

Analysis of EU’s

Import and Export of Fastening Tools in Q1 2021

by Behrooz Lotfian

市場回溫下歐盟緊固工具貿易分析 The fastening tools market is classified by product type, technology, sales mode, end-use applications, and region. The value of global export of fastening tools was 20.45 billion USD, and the value of global import of fastening tools was 19.85 billion USD in 2020. (Table 1) (in USD 1,000)

Table 1. Global Fastening Tools Import & Export Global Export Value Global Import Value

2016

2017

2018

2019

2020

20,124,353

22,624,345

24,422,124

23,101,595

20,448,979

2016

2017

2018

2019

2020

19,682,992

22,003,600

23,903,930

22,732,583

19,849,477

The fastening power tools market peaked in 2018 and after 2018 the trade in this category declined. ●

2018 to 2019 (export): a 5.4% decline

●

2019 to 2020 (export): an 11.5% decline

●

2018 to 2019 (import): a 4.9% decline

●

2019 to 2020 (import): a 12.7% decline

The pandemic’s impact worsened the situation in 2020.

In 2020, Europe’s fastening tools export value was 8.9 billion USD, taking up 44% of the world’s export, and the import value was 8.5 billion USD, taking up 43% of the world’s import. (Table 2) (in USD 1,000)

Table 2. Europe’s Fastening Tools Import & Export Europe’s Export Value Share Europe’s Import Value Share

2016

2017

2018

2019

2020

9,144,317

10,331,215

10,968,398

10,189,122

8,933,653

45%

46%

45%

44%

44%

2016

2017

2018

2019

2020

8,004,219

9,013,811

9,835,589

9,356,269

8,457,262

41%

41%

41%

41%

43%

Graph 1 shows the world’s YoY ratio in comparison to Europe’s YoY ratio in the fastening tools category. This chart reveals that Europe is more dependent on its imported fastening tools than the world is dependent on fastening tools exported from Europe.

In 2017, Europe’s export growth was larger than the average growth of the world, but after that the situation changed.

In 2018, Europe’s export growth was lower than the average growth of the world, which means the consumers preferred non-European fastening tools to European ones. The same thing happened in 2019 and 2020. Although the market demand declined in 2019, Europe’s decline was larger than the average decline of the world.

076

Graph 1. Fastening Tools YoY Ra�o 15.0% 10.0% 5.0% 0.0% -5.0%

2017

2018

2019

2020

-10.0% -15.0% World Export

Europe Expoort

World Import

Europe Import

In terms of imported fastening tools, Europe’s YoY ratio was higher than the average rate of the world in 2017 and 2018. In 2019 and 2020, Europe’s rate of market decline was lower than the average rate of the world. That means the consumers preferred European fastening tools to non-European tools.

Emerging Fastener Markets no.10/2021

Emerging Fastener Markets no.10/2021

077

Industry Focus Parameters Influencing the Growth of the European Fastening Tools Market Increasing sales & production of automobiles (The pandemic’s negative effect on the whole fastening tool market) Fastening tools are widely used to manufacture and assemble automobiles. After a year that saw the sharpest drop ever in EU car sales due to the COVID-19 pandemic, the European Automobile Manufacturers’ Association (ACEA) forecasts that 2021 will mark a first step on the path to recovery, with sales rising by about 10% compared to 2020. The fallout of COVID is expected to persist into the first quarter of 2021, but the car market should pick up in the second half of the year as vaccination programmes progress1.

Increase in preference for DIY in developed and developing regions. (The pandemic’s positive effect on the whole fastening tool market) People in developed regions such as North America and Europe consider home improvement and small maintenance activities as favourable pastimes. To leverage the benefit of changing consumer preference toward DIY ethics, manufacturers are focusing on providing compact, portable, and cost-efficient tool solutions to household users. This trend is also growing significantly in developing markets2.

The COVID-19 pandemic has caused people to spend more time at home. Many looked to making their living spaces more comfortable and suitable for remote working, with loss of income and worries over the economy. DIY became more of a necessity for those who would normally hire professionals. With 76% to 81% of Europeans valuing their home more than before the pandemic, many will continue to improve areas of their homes3.

1 https://www.acea.auto/press-release/eu-car-sales-covid-recovery-expected-to-start-in-2021-auto-industry-says/ 2 https://www.persistencemarketresearch.com/market-research/fastening-power-tools-market.asp 3 https://store.mintel.com/report/europe-diy-retailing-market-report

Europe’s Fastening Tool Export in 2021

(in USD 1,000)

Table 3. Europe’s Quarterly Export Value of Fastening Tools 2017-Q1

2017-Q2

2017-Q3

2017-Q4

2018-Q1

2018-Q2

2018-Q3

2018-Q4

2019-Q1

2,474,841

2,638,739

2,785,116

2,919,483

3,117,499

2,953,933

2,715,918

2,757,069

2,844,920

2019-Q2

2019-Q3

2019-Q4

2020-Q1

2020-Q2

2020-Q3

2020-Q4

2021-Q1

2,781,534

2,488,173

2,565,025

2,517,326

2,019,164

2,340,986

2,506,676

2,645,786

Graph 2. Europe's Quarterly Export of Fastening Tools (in Thousand USD) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000

-

Europe’s export value has declined since 2018. The 2nd quarter of 2020 was the period when the pandemic beat their businesses. Three quarters later they have recovered and the 1st quarter of 2021 resulted in 2.646 billion USD as the highest sales since the 2nd quarter of 2019.

Based on this trend it is predictable that the export of fastening tools will be around 9.5 billion USD in 2021.

1,000,000 500,000 0

078 Emerging Fastener Markets no.10/2021

Industry Focus Europe’s Fastening Tool Import in 2021

(in USD 1,000)

Table 4. Europe’s Quarterly Import Value of Fastening Tools 2017-Q1

2017-Q2

2017-Q3

2017-Q4

2018-Q1

2018-Q2

2018-Q3

2018-Q4

2019-Q1

2,117,399

2,331,687

2,442,721

2,488,435

2,611,707

2,568,317

2,454,780

2,482,135

2,519,184

2019-Q2

2019-Q3

2019-Q4

2020-Q1

2020-Q2

2020-Q3

2020-Q4

2021-Q1

-

2,490,131

2,318,469

2,343,325

2,258,247

1,890,970

2,184,317

2,377,500

2,588,448

-

●

●

●

●

Europe’s import value has declined since 2018.

Graph 3. Europe's Quarterly Import of Fastening Tools (in Thousand USD)

The import value of the 1st quarter of 2021 is the highest since the 2nd quarter of 2018.

The import growth of fastening tools after the 2nd quarter of 2020 was very sharp, which could be interpreted as an emotional reaction to the pandemic rather than a logical purchase.

It is predictable that the decline will occur after the 2nd quarter of 2021 and later.

2,700,000 2,500,000 2,300,000 2,100,000 1,900,000 1,700,000

Based on this trend it is predictable that the import value of fastening tools will be around 9.5 billion USD in 2021.

1,500,000

079 Emerging Fastener Markets no.10/2021

Industry Focus

Analysis of Fastening Tools Import and Export of USA Under the Current Market Recovery

市場復甦下的 美國緊固工具貿易現況

by Shervin Shahidi Hamedani

U.S. Trade Introduction T h e C OV I D -19 p a n d e m i c m a d e a n ext raordi na r y dist u rba nce to t he globa l economy and world trade, as production and consumption drastically reduced across the globe. Last year the global economy recorded its worst annual drop in output since early 1940s i n all regions, wit hout exception, with an estimated loss of 255 million fulltime jobs worldwide. While the recovery in the third quarter, as countries started to lift restrictions, was quick and in line with expectations, a second wave of the virus hit earlier than expected in the final quarter of 2020, diminishing the recovery particularly in Western Europe.

Despite the fact that COVID-19 outbreak caused a global economic slowdown where trade, investment, growth, and employment were all affected, an earlier than expected breakthrough with vaccines and improved management of lockdown measures have been offsetting factors in terms of COVID-19's overall economic impact.

A year and a half since the beginning of the pandemic, the United States’ economy has been reinforced by substantial fiscal support, vaccination is expected to become widespread, and economic growth is anticipated to reach 6.8% this year, the fastest pace since 1984. In terms of trade statistics, last year U.S. exports dropped by 16%, while imports fell by 10%. But neither the drastic declines in imports and exports, nor the subsequent recoveries this year have been equally distributed. The result of this inequality has been a surge in the U.S. trade deficit. The difference between U.S. exports and imports of manufactured goods is now at its highest level ever relative to the size of the economy.

Based on a recent report by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the goods and services deficit was USD71.2 billion in May, up USD2.2 billion from USD69.1 billion in April. May exports were USD206.0 billion, USD1.3 billion more than April exports. May imports were USD277.3 billion, USD3.5 billion more than April imports. The May increase in goods and services deficit reflected an increase in the goods deficit of USD2.3 billion to USD89.2 billion and an increase in services surplus of USD0.1 billion to USD17.9 billion.

Year-to-date, the goods and services deficit increased USD110.9 billion, or 45.8 percent, from the same period in 2020. Exports increased USD101.6 billion or 11.4 percent. Imports increased USD212.5 billion or 18.7 percent.

The average goods and services deficit increased USD0.2 billion to USD71.8 billion for the three months ending in May. Automotive vehicles (i.e. passenger cars), parts and engines, civilian aircrafts, semiconductors are among those products with decrease in their exports.

Chart 1.

Predictions for a fast recovery in world trade have improved as merchandise trade expanded more rapidly than expected in the second half of last year. According to new estimates from the WTO, the volume of world merchandise trade is expected to increase by at least 8.0% this year after having fallen 5.3% in 2020. The global trade is continuing its recovery from the downfall caused by the pandemic that reached its lowest point in the second quarter of last year. In the first quarter of this year, trade recovery reached a record high as it increased by 10% YOY and 4% QOQ.

080 Emerging Fastener Markets no.10/2021

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081

Industry Focus In terms of industrial supplies, US exported about USD660 billion in 2020 with only about USD140 billion from January till May. In the first 5 months this year, the value of exports increased to more than USD246 billion.

U.S. Fastener Trade The U.S. fastener industry constitutes a multibillion-dollar segment of the economy. It has a large number of varied companies centered around the main purchasers of fastener products, including the automotive, aerospace, and military sectors.

A considerable demand for fastening tools (for both hand tools and power tools) comes from small repair companies in the U.S. which still struggle because of shortage of consumer demand. Some of the players in this sector may not recover and consequently it significantly reduces the number of enterprises in the industry moving forward.

The above explanations on market demands in the U.S. will explain the decline in fastening tools trade in 2020 and its recovery this year. Charts 2 and 3 below show the values of imports and exports for tools (HS Code 8207) by the U.S., on a quarterly as well as monthly basis (Oct 2020 – May 2021). The figures show that the values of imports and exports are returning to its pre-pandemic level.

Chart 2.

The U.S. industrial fasteners industry has faced several challenges as a result of the pandemic and the industry still deals with its impact. As mentioned, the economic impact of COVID-19 on the current macroeconomic environment in the U.S. is comparable with other major shocking events since 2000 such as September 11 attacks and the Great Recession between 2007 and 2009.

In terms of global industrial fasteners last year, the size of the market was about USD76.70 billion with a negative demand shock. The market size shrank by 6.75% compared to the average YOY growth between 2017 and 2019. However, the global fasteners market is expected to reach USD 79.54 billion by the end of this year and to continue its growth to USD 106.05 billion in 2028. This projection gives us a Compound Annual Growth Rate (CAGR) of 4.2% between 2021 and 2028. The swift rise in CAGR is because of the drastic growth in fastener demand and a return to a pre-pandemic situation once the pandemic is over.

Chart 3.

U.S. Fastening Tools The fastening tool and hardware wholesaling i ndust r y li ke ma ny ot her i ndust r ies i n t he U.S. experienced a drop in demand as consumer spending decreased. Nevertheless, stay-at-home orders had some positive but limited impacts on the home improvement sector and DIY fastening tools as consumers have more time to attempt home improvement projects.

Typically, industry operators purchase fastening tools in large volumes before distributing them in customized varieties and at competitive prices to downstream markets, such as retailers, other wholesalers and other end user industries. Over the five years to 2020, the industry has experienced increased revenue, partly due to the increase in consumer spending and the value of construction during most of the period except for last year. However, as the economy recovers from the COVID-19 pandemic, consumer spending is increasing, and therefore, industry demand is rising. Consumers invest in home improvement and construction activities that may have been deferred during the pandemic.

However, recovery in the industry is expected to be slow, and the total revenue this year is projected to be below pre-pandemic levels. Nonetheless, non-residential and residential construction as well as automotive markets are expected to return to growth, along with manufacturing activity.

082

The countries which have the highest value of exports to the U.S. market are China, Japan, Germany, Canada, Taiwan and South Korea.

These countries own more than 70% of the total value of U.S. tools imports.

On the other hand, Canada, Mexico, Belgium, Germany, Japan, UK and Australia are the major destinations for U.S. tools.

Conclusion As the economy recovers from the COVID-19 pandemic and demand recovers from key downstream industrial sectors, the revenue for Fastening Tools is projected to expand over five years. Demand from the construction sector is forecast to continue growing, although at a diminished rate.

Generic fasteners and fastening tools are key components in various construction projects. In 2021, the value of construction is expected to increase, presenting a potential opportunity for the industry. Consumer spending is also expected to increase, providing a source of demand for companies in the Fastening Tools.

Sources: U.S. International Trade in Goods and Services, US Census Trade Topics and News, World Trade Organization Reports and Statistics, International Trade Centre Industrial Fasteners Market, Fortune Business Insights ITC, Trade Statistics for International Business Development Tool & Hardware Wholesaling in the US Industry Outlook, IBIS World

Emerging Fastener Markets no.10/2021

083 Emerging Fastener Markets no.10/2021

Industry Focus

by Sharareh Shahidi Hamedani

Analysis of

Fastener Trade of Mexico 墨西哥扣件貿易分析

An Overview of Mexican Industry Sectors The automotive sector is one of Mexico’s most significant industries.

This sector is divided between the passenger vehicle sector and heavy vehicles for cargo, construction and agriculture. Mexico is the sixth largest passenger vehicle manufacturer in the world, producing 3.7 million units of cars annually. However, in 2020, due to the problems caused by the pandemic, this number dropped sharply. Mexico's car output dropped by 15.1 percent year-on-year to 278.7 thousand units in January 2021, following a 18.4 percent jump in the previous month. On the other hand, car production in Mexico is expected to be 310 thousand units by the end of Q1 2021.

M

Mexico is the fifth largest producer of auto parts worldwide, with the production of USD 99 billion in 2019 and USD 57 billion in 2020. It is also the largest export destination for U.S auto parts.

ex i c o i s t h e 1 5 t h l a r g e s t economy in the world. The most important trading partner for Mexico is the USA. Mexico has more than 80% of all its goods exported to the United States. The consumption of fasteners in Mexico is rigidly connected to US industrial fastener consumption. The reason for this is that most fasteners produced in Mexico are not for the Mexican ma rket . T he major it y of f i n i shed i ndu st r ia l pro duc t s a s semble d i n Mex ic o (aut omobi le s , mach i ner y, bu i ld ing par t s , white goods , etc .) are for expor t a nd mo st of the exports are for the North American market. Manufacturing in Mexico is experiencing a measured growth, driven by improving conditions in the domestic economy and an upswing in consumer spending and industrial manufacturing i n the U. S . , wh ich rema i n s a key export market for cars and automotive products, machinery and intermediate assemblies from Mexico. All those sectors require the use of fasteners; and therefore, the demand from the U.S. makes a significant contribution to Mexican fastener consumption.

084

Monthly Car Production in Mexico from Feb 2020 to Jan 2021 (Unit: Vehicle)

SOURCE: TRADINGECONOMICS.COM

1

INSTITUTO NACIONAL DE ESTADÍSTICA Y GEOGRAFÍA (INGI)

(in Billion USD1)

2016

2017

2018

2019

2020

Total Local Production

85

92

97

99

57

Total Exports

62.2

73.5

79.3

81

27.4

Total Imports

40

49.1

54.1

55.3

50

https://www.trade.gov/knowledge-product/mexico-e-automotive-parts-and-supplies

Emerging Fastener Markets no.10/2021

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Industry Focus Monthly Car Production of the U.S. in 2020 Mexico’s auto parts industry experienced a much tougher condition in 2020, as the U.S. auto industry was hard hit. View the right hand statistics.

Due to the pandemic, car production in the United States decreased to 2.03 million units in December 2020 compared to 2.25 million units in November 2020.

Meanwhile, Mexico is the sixth largest manufacturer of heavy-duty vehicles for cargo, and it is the world’s largest tractor truck exporter, accounting for most of the heavy-duty vehicle exports to the United States. It is also the fourth largest exporter of heavy-duty vehicles for cargo and the second largest export market for U.S. heavyduty trucks. The value of Mexico’s exported heavy-duty vehicles was 13.1 billion USD in 2019 and 13.0 billion USD in 2020.

SOURCE: TRADINGECONOMICS.COM

FEDERAL RESERVE

Fastener Trade of Mexico The importance of fasteners can be put into perspective by the fact that these tiny components play a big role in providing support and mobility to equipment and machines. HS Code 7318 is the main code of fasteners.

Tallying with the fact that Mexico is dealing 80% of its trade with USA, the below tables indicate the U.S. is the main trade partner for Mexico in the fastener sector.

Mexico’s Fastener Export to USA (Unit: 1,000 USD) HS Code

2018-Q4

2019-Q1

2019-Q2

2019-Q3

2019-Q4

2020-Q1

2020-Q2

2020-Q3

Ave.

7318

32,189

31,877

34,468

34,149

31,714

31,665

24,418

29,066

31,193

Quarterly Change

-

-1.0%

8.1%

-0.9%

-7.1%

-0.2%

-22.9%

19.0%

-

Mexico’s Fastener Import from USA (Unit: 1,000 USD) HS Code

2018-Q4

2019-Q1

2019-Q2

2019-Q3

2019-Q4

2020-Q1

2020-Q2

2020-Q3

Ave.

7318

366,629

395,605

394,136

388,162

350,671

362,244

176,701

327,120

345,158.5

Quarterly Change

-

7.9%

-0.4%

-1.5%

-9.7%

3.3%

-51.2%

85.1%

-

The left graph demonstrates the signs of improving fastener market conditions in Mexico.

086 Emerging Fastener Markets no.10/2021

Industry Focus Future of Mexico’s Fastener Trade Due to the amount of fastener consumption in the car industry, the fluctuations of this market are mostly interconnected to the fluctuations of the car market. According to Trading Economics' report, in the long-term, the average monthly car production of Mexico is projected to reach around 360 thousand units in 2022 and 370 thousand units in 2023. Trading Economics also reports in the long-term, the average monthly car production of the U.S. is projected to reach around 2.50 million units in 2022 and 2.80 million units in 2023.

Furthermore, the following table illustrates variations of the trade values of two main automotive fastener categories.

Unit: 1,000 USD

Mexico's Fastener Export to USA 2018-Q4

2019-Q1

2019-Q2

2019-Q3

2019-Q4

2020-Q1

2020-Q2

2020-Q3

HS code 731815

18,762

19,136

20,154

20,085

18,069

18,346

14,147

18,159

Quarterly Change

-

1.99%

5.32%

(0.34%)

(10.04%)

1.53%

(22.89%)

28.36%

HS code 731816

7,040

6,987

8,460

8,447

7,717

8,878

6,919

5,793

Quarterly Change

-

(0.75%)

21.08%

(0.15%)

(8.64%)

15.04%

(22.07%)

(16.27%)

Mexico's Fastener Import from USA 2018-Q4

2019-Q1

2019-Q2

2019-Q3

2019-Q4

2020-Q1

2020-Q2

2020-Q3

HS code 731815

194,350

208,105

199,756

201,152

193,118

186,510

87,827

169,510

Quarterly Change

-

7.08%

(4.01%)

0.70%

(3.99%)

(3.42%)

(52.91%)

93.00%

HS code 731816

61,939

65,176

67,798

66,940

58,196

61,185

31,235

60,809

Quarterly Change

-

5.23%

4.02%

(1.27%)

(13.06%)

5.14%

(48.95%)

94.68%

Meanwhile, in the third quarter of 2020, the import of fasteners from the United States was on the rise, but the export was on the decline, which is in line with the projection of an increase in the Mexican car market and a decreasing demand in the U.S. market.

Summary Given all the above-mentioned assumptions, a moderate growth of the fastener market is expected in Mexico for the reason that Mexico’s industrial fastener consumption has two crucial characteristics.

Firstly, industrial fasteners used in Mexico, regardless of where they're sourced, have a good chance of finding their way into the American Market. 83% of Mexico's manufacturing output is produced for export to North America (80% to the U.S. and 3% to Canada). Every major auto manufacturer has made a significant investment in Mexico. Business relationships in Mexico can serve to create a presence in the growing American market and can also be a platform to reach additional US-based opportunities. Additionally, Mexico remains one of the most strategic markets with opportunities to reach North America.

The second one refers to the strong cultural attitude in Mexico that promotes sourcing fasteners from local suppliers. They supply the shortage of domestic production from abroad. Consequently, the largest U.S. manufacturers have local Mexican facilities, but as demand grows, Mexican owned companies and facilities continue to be added.

088 Emerging Fastener Markets no.10/2021

Industry Focus

Industry Focus

Analysis of

市場回溫下中國緊固工具進出口概況

China’s Import and Export of Fastening Tools

by Sharareh Shahidi Hamedani

in Q1 2021

In 2020, China’s fastening tools industry was worth 5.02 billion USD. Its import value of fastening tools was 1.39 billion USD, and the export value of fastening tools was 3.63 billion USD in 2020.

It was expected that the numbers would have decreased because of the pandemic in 2020 in comparison to 2019, but the statistics tell another story. Table 1 reflects the fastening tools trade from 2013 to 2020.

Table 1 The Fastening Tools Trade 2013 - 2020 (Numbers in thousand USD) Import

2013

2014

2015

2016

2017

2018

2019

2020

1,543,730

1,734,053

1,735,007

1,493,095

1,709,614

1,791,160

1,739,051

1,387,445

Import Growth

---

▲12%

▼0.5%

▼14%

▲15%

▲5%

▼3%

▼20%

2,595,056

2,814,767

2,815,326

2,668,518

3,215,687

3,636,030

3,597,601

3,628,848

---

▲8%

▼0.01%

▼5%

▲21%

▲13%

▼1%

▲1%

168%

162%

162%

179%

188%

203%

207%

262%

Export Export Growth Ex./Imp

The pandemic affected the Chinese market. The import value growth of fastening tools in 2020 was 20%, which was lower than 2019, but it seemed that the import reduction was a planned policy because the value of this item in 2019 was 3% lower than 2018.

The pandemic just sped it up.

The export of fastening tools tells a different story. From 2017 to 2020, the export value of these products never had a negative growth (except for a 1% drop in 2019). The export value of fastening tools in 2020 was the 2nd highest, only second to the export value of 2018, and was up 1% over the export value of 2019, which means the export still grew under pandemic lockdowns. China exported 17.7% of the whole fastening tools and imported 7% of the whole fastening tools in the world. Therefore it is not incorrect to say that China has become a central manufacturing hub of fastening tools in the world. Any disruption in China’s output is expected to have repercussions elsewhere through regional and global value chains. However, the following fundamental reforms have reduced China’s import value of fastening tools and increased the export value: 1.

Efficient manufacturing practices,

2.

Upgrade in process technology and

3.

COVID returning to Europe and the U.S., and some lockdowns came back again.

The export to import ratio and its growth reveals that China tries to minimize its dependency on overseas tools in this sector.

Export in Q1 2021 Table 2 and Chart 1 show China’s quarterly export values of fastening tools.

China’s export value has been increasing since 2017. The 1st quarter of 2020 with the lowest export value reflects the impact of the pandemic. The export value was around 758 million USD in the 1st quarter of 2020, 8% lower than in the 1st quarter of 2019 (the

091 Emerging Fastener Markets no.10/2021

Industry Focus Table 2 China's Fastening Tool Export Value (Numbers in thousand USD)

Export Value

2017-Q1 645,755 2019-Q1 791,877 2021-Q1 988,990

2017-Q2 815,433 2019-Q2 945,136

2017-Q3 865,090 2019-Q3 934,501

2017-Q4 889,410 2019-Q4 926,086

2018-Q1 860,809 2020-Q1 757,666

2018-Q2 905,327 2020-Q2 896,826

2018-Q3 939,387 2020-Q3 958,231

2018-Q4 930,507 2020-Q4 1,015,911

Chart 1. China's Fastening Tool Export Value (in thousand USD) 1,200,000 1,000,000 800,000 600,000 400,000 200,000

Based on this trend it is predictable that the export value of fastening tools will reach 4.0 billion USD in 2021.

1

4 20

21

-Q

3 20

20

-Q

2 20

20

-Q

1 20

20

-Q

4 20

20

-Q

3 20

19

-Q

2 20

19

-Q

1

-Q

20

19

4 20

19

-Q

3 20

18

-Q

2 20

18

-Q

1 20

18

-Q

4 20

18

-Q

3 20

17

-Q

2

-Q 17

-Q 17

20

20

17

-Q

1

0

20

pandemic’s impact on China’s fastening tools industry). China’s fastening tools industry started to recover and gave a stunning performance. The last quarter of 2020 unveiled a record value at 1.0 billion USD over the last corresponding quarter; it was 30.5% higher than the 1st quarter of 2020, and was the second highest number since 2017.

Table 3 China's Fastening Tool Import Value (Numbers in thousand USD)

•

200,000 100,000

1

4

-Q 21

20

20

20

-Q

3

2

-Q 20

20

20

-Q

1 20

20

-Q

4 20

19

-Q

3 20

19

-Q

2 20

19

-Q

1 20

19

-Q

4 20

18

-Q

3 20

20

18

-Q

2 -Q

1 20

18

-Q

4 18

20

17

-Q

3 20

17

-Q

2

0

20

I n 2 019 t he va lues decl i ned and dropped faster in 2020. It means that the domestic market has reduced its dependency on overseas fastening tools since 2019.

2018-Q4 371,657 2020-Q4 336,322

300,000

-Q

•

2018-Q3 473,343 2020-Q3 322,319

400,000

1

China’s import values improved in 2018 in comparison with 2017

2018-Q2 482,031 2020-Q2 374,680

500,000

-Q

•

2018-Q1 464,129 2020-Q1 363,010

600,000

17

Table 3 and Chart 2 show China’s quarterly import values of fastening tools.

2017-Q4 471,557 2019-Q4 382,134

Chart 2. China's Fastening Tool Import Value (in thousand USD)

17

Import in Q1 2021

2017-Q3 511,054 2019-Q3 419,382

20

2017-Q2 376,281 2019-Q2 492,156

20

Import Value

2017-Q1 350,722 2019-Q1 445,379 2021-Q1 376,759

In the 1st quarter of 2021 the import value grew in comparison with the 4th quarter of 2020 which was predictable. The sharp growth in export caused the lack of domestic goods, so the import increased to compensate for it.

Based on this trend it is predictable that the import value of fastening tools will be around 360 million USD quarterly.

092 Emerging Fastener Markets no.10/2021

Industry Focus

China’s Fastening Tool Trading Partners The main markets for China’s fastening tools are USA, Germany, India and Japan.

• USA is the top importer of China’s fastening tools and imported 202.1 million USD worth of fastening tools in the 1st quarter of 2021, taking up 20.4% of all fastening tools exported from China.

• Germany is the 2nd largest importer of China’s fastening tools, and imported 85.5 million USD worth of fastening tools in the 1st quarter of 2021, taking up 8.6% of all fastening tools exported from China.

• India is the 3rd largest importer of China’s fastening tools and imported 61.8 million USD worth of fastening tools in the 1st quarter of 2021, taking up 6.2% of all fastening tools exported from China.

• Japan is the 4th largest importer of China’s fastening tools and imported 41.4 million USD worth of fastening tools in the 1st quarter of 2021, taking up 4.2% of all fastening tools exported from China.

• The main fastening tools suppliers for China are Japan, Germany, Taiwan and South Korea.

• Japan exported 113.9 million USD worth of fastening tools in the 1st quarter of 2021, which was 30.2% of the total fastening tool import value of China.

• Germany exported 101.5 million USD worth of fastening tools in the 1st quarter of 2021, which was 26.9% of the total fastening tool import value of China.

• Taiwan exported 101.5 million USD worth of fastening tools in the 1st quarter of 2021, which was 13.9% of the total fastening tool import value of China.

• South Korea exported 28.6 million USD worth of fastening tools in the 1st quarter of 2021, which was 7.6% of the total fastening tool import value of China.

Last Word Some analysts believe that China’s fastening tool export has reached the peak, and that it will decline because of : • Nationalism, the policies of the protection for Chinese goods on a governmental level • I n c re a s i n g d o m e s t i c d e m a nd relative to external demand, • I n c r e a s i n g l a b o r c o s t s a n d automation costs Based on the documents and analysis that I made in this article, I believe that the fastening tools industry and its export segment will improve in the future.

093 Emerging Fastener Markets no.10/2021

094 Emerging Fastener Markets no.10/2021

Company Focus

Early Deployment for Customers Expands Sales to 5 Continents with Its

Self-owned Brand

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

為客戶超前部署 威廉特「William」品牌行銷五大洲 When it comes to Drywall Screws, Self-drilling Screws, Chipboard Screws, Thread Rolling Screws, Machine Screws used in the global construction, electronics, a nd non-safety automotive fastener industries, the self-owned brand of William, “William”, is definitely one of the unignorable options. Since the debut of the “William” brand with delicate design and excellent quality along with customized service in 2013, William has gradually replicated its reliable corporate image already established in European and U.S. markets to new emerging markets like the Middle East and Latin America. Through the model of “one agent in one country”, William has successfully introduced its brand to the supply chains in Oman, Iraq, Lebanon, Bahrain, Yemen, Kenya, and Uruguay. And, such an expansion is still ongoing.

schedule at end of every month and can coordinate shipment service and book shipping space for customers to ensure delivery punctuality. If a customer needs to change quantities on certain specifications of his order two weeks or one month ahead of shipment, it’s fine to us. And, if required, we are also able to ship out the order for a single or certain specifications within 30 days. We can even give customers recommendations on their package designs,” said President Mr. William Doong.

Fully Integrated Production Lines and Service Making Every Effort to Achieve “Absolute Customer Satisfaction”

On the other hand, William makes every effort to develop new products and has recently released with its sub-contractor a new type of Deck Screws with improved thread design, which are mainly used on hardwood and not necesarry to have sharp point cut to achieve quick drive and better pull-out strength.

Unlike other industry peers only dedicated to OEM production, William provides fully integrated service from order acknowledge to package design, and final delivery. As all members of William have a wide knowledge of capacity, product design & production, quality control & inspection, packaging, and shipment, William can always provide service that is professional, integrated, and beyond customers’ expectations.

“Our employees are required to train to learn how screws are made and categorized. Through practical sales experience, they’ll get a clear picture of our current capacity, special manufacturing cases, and subcontractors. They’ll be also able to make adjustments in manufacturing to respond to different customers’ demands and carry out good qualit y cont rol plan. Our production cont rol division subm it s it s nextmont h deliver y

Modern Quality Control System and Product R&D William has its manufacturing procedures, products, and service regularly audited by quality management systems every year. Thus, so far, it has been certified with ISO 9001, ISO 14001, and ISO 17025 in latest version, and can provide customers with complete inspection reports upon delivery.

Continuous Deployment in Developing Markets to Make More Customers Experience the Advantages of “William” Since the creation of “William”, it has continuously made a brilliant performance on the market and almost achieved the growth of around 1020% per year. In addition to sales to the Middle East market, William also hopes that it can expand sales to Southeast Asia (such as Thailand and Malaysia) and other South American countries. Its website has been added the Spanish version in August to shorten its distance to Latin American customers.

President Doong said, “besides no compromise on fastener quality, we also aim to the standardization, pleasing appearance, and practicality of packaging very much. Batch numbers also mark on every carton of our products for track-back.

Furthermore, the way of “one person in charge for one client” and the vertically integrated operation also enable us to help customers track their order status and make responses to their inquiries more efficiently. All of these are the advantages we have been recognized by customers for years.”

Contact: Shelly Chen, Sales Manager Email: shelly@billspec.com.tw

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