Industry Focus >>Keeping an Eye on

Market Trends

and Developing

Niche Markets
緊盯市場趨勢脈動，重點開發利基市場

AHardware & Fastener Components - no.56/2022s the season enters the second half of2022, the global fastener industry is still
struggling to find the best solution to thechallenges ahead, while actively creating opportunities
for themselves in the face of the epidemic, cost andprice pressures, product/technology competition,
new market trends and many other challenges, inanticipation of finding the best approach to win in theever-changing fastener market.

018

Demand in Europe and the U.S.
Continues to Grow;
Taiwan Fastener Manufacturers
Can Strengthen Their Entry into Key
Industry Sectors
With high demand and good prices, Taiwanese
fastener manufacturers have always earned theirbiggest profit from European and U.S. fastenermarkets for years, and with excellent technology
and competitive quality they’ve also maintained ahigh market share. According to the data released by
U.S. Customs, the U.S. imported more than US$1.4
billion worth of fasteners from Taiwan in the first
five months of 2022, with a cumulative growth of
26% from January to May. The U.S. had about 40%of its fasteners imported from Taiwan, far exceeding the value of imports
from China during the same period (only less than US$800 million andrepresenting a market share of about 20% in the U.S.). In addition, EU dataalso show that Taiwan is among the major fastener import partners of EU
countries, such as Germany, France, the Netherlands, Italy, Poland, as wellas the UK (which is no longer a member country of the EU), showing thatthe demand for and the dependence upon Taiwan fasteners in Europeanand U.S. markets remain high.
However, U.S. fastener imports from Japan, Germany, Canada and S.
Korea have also increased in the same period, which may be translated
into a fact that the increase of U.S. demand for high-end fasteners
for automobiles, aerospace and electronics, in addition to low-tomedium end fasteners, has also increased. Taiwanese manufacturers
may consider actively working in these directions in terms of productupgrade. It is understood that construction/DIY, automotive,furniture, and aerospace fasteners are all popular items exported tothe U.S. market, and the U.S. market has a demand scale of about
US$2 billion a year for construction fasteners alone. As a result,Taiwanese fastener manufacturers owning many innovative designs
and technical applications in these fields should seize the great
opportunity to gain further exposure. At International Fastener Expo
(IFE) this year, dozens of Taiwanese manufacturers (such as Fong Yien
Industrial Co., Ltd., J.C. Grand Corporation, Fratom Fastech Co., Ltd.,
Soon Port International Co., Ltd., Mac Precision Hardware Co., etc.) willalso showcase their innovative made-in-Taiwan products to demonstrate
their strengths.

by Gang Hao Chang, Vice Editor-in-Chief of Fastener WorldIndustry Focus >>Capturing Customers’ Preferences andEnhancing Competitiveness of Productsand Services
With the advancement of industrial technology
and customers’ increasing emphasis on environmental
protection, fastener design and processing must keep
pace with the upcoming trend. In recent years, we’ve seenthat many manufacturers have started to strengthen theirproduct design capabilities, upgrade their productionlines and equipment, eliminate more energy-consuming
equipment, and actively invest in the development of
new materials/processes/products/equipment/services
in response to future market trends, thus getting out ofprice-cutting competition and creating more efficient andprofitable performance. The ideas of ESG, energy saving,
net zero carbon emission, lean manufacturing, industry
4.0, digital management, and AI-enabled technology
are all very important steps for the fastener industry tomove to the next-generation industrial development andenhance its competitiveness on the global stage. Somecompanies have been also featured in this issue as good
examples of how to grasp opportunities to take the leadin the market trends. These companies are: Bi-Mirth(adopting new eco-friendly electroplating solutions andcoatings), Abis Innovative Technology (developing newacid free pickling to replace acid pickling), Japanese Art
Screw (developing “Motiontite” bolts), and Hwa Hsing
Screw Industry (introducing Industry 4.0 production lines
and electrostatic smoke-discharging systems).

Hardware & Fastener Components - no.56/2022

Don't Put All Eggs in One Basket;
Emerging Markets are Full ofOpportunities

020

Wit h t he t rend of accelerat ing in f rast r uct u redevelopment in emerging countries /regions such as
Southeast Asia, the Middle East & North Africa, Turkey,
Central & South America to attract more foreign
investments as well as the trend of strengthening domestic
product upgrade and competitiveness in the market, there
has been a significant sign of growing fastener demandin these emerging markets/regions in recent years. For
Taiwanese suppliers always focusing on the Europeanand U.S. markets, making efforts to develop emerging
markets can also help them avoid the risk of sudden
and drastic market changes in the future that may
slash their product competitiveness overnight (forexample, EU’s anti-dumping measures on Chinese
fasteners).
Relevant data show that Thailand, Vietnam, Malaysia,and Indonesia are main fastener demanding countries inSoutheast Asia these years. Although Taiwan also ranks
among the top three import trading partners of Thailand,
it is out of the top 10 of Malaysia. On the contrary,
the deployment of China and Japan in the Southeast
Asian fastener market continues to grow, so Taiwanesemanufacturers still need to do more to catch up with theirpace. Of course, in the ASEAN market there are a few benchmark
Taiwanese fastener manufacturers (such as Tycoons, Tong Heer, ChinWell, Homn Reen, Rodex, San Shing, etc.). The first three companies
reported over NT$3 billion revenue in 2022 respectively, but they
all reported a significant 2-digit decline in revenue compared to theprevious year. Is this due to a change in local customers’ demand or
the better competitiveness of other competitors’ products and services?
This is perhaps a good question for Taiwanese companies to thinkabout.
For promotion and development in emerging markets, Fastener
World Inc. will continue to try our best for manufacturers. In H2 2022,
we’ll also exhibit at exhibitions in several key emerging markets (incl.
Vietnam, Indonesia, Saudi Arabia, and Egypt) to help manufacturers
promote and gain exposure. Through close contact with local buyers,
we hope to build a solid bridge for interaction and communication
between buyers and sellers.

The Imbalance Between Supply and Demand is ShortTerm and May Return to Normal by the Year End
Regarding the issue of significant fluctuations in current marketdemand and supply, a Taiwanese supplier recently told Fastener World
that the order volume Taiwanese suppliers have received over the past
12 months is actually much higher than their total capacity, often
resulting in an average lead time of 4-6 months (which was only 2-3
months before). However, his buyers complained to him that they did
not have double capital to purchase more and were forced to turn tosuppliers in China, Southeast Asia or their parent countries. If welook at the past trend of industrial demand, it is inevitable that
there’ll be fluctuations. The current drop in orders may not be abad thing, as it can sometimes be caused by seasonal adjustments
in foreign economies or by customers’ intention to consume
existing inventory first. Under the overall market supply anddemand cycle, it is expected that the imbalance between supply
and demand in the industry will gradually return to normal by
the end of this year.

Industry Focus >>Comparison of China’s and Taiwan’s Fastener Trade
China’s Fastener Trade in First-half 2022 (USD)
Ranking

ImportSourceFirst Half of2022ExportDestinationsFirst Half of
2022

ImportSourceFirst Half of2022

ExportDestinationsFirst Half of2022

0

World

1,475,295,976

World

5,148,551,761

World

108,226,355

World

3,183,209,705

1

Japan

439,819,788

U.S.A

858,125,493

Japan

36,177,839

U.S.A

1,427,203,915

2Germany

271,571,176

Germany

308,014,680

U.S.A

21,424,773

Germany

260,847,004

3

U.S.A

200,127,590

Vietnam

223,559,285

China

12,563,243

Netherlands

169,348,088

4

Taiwan147,377,359

S. Korea

221,971,974

Germany

7,266,443

Japan

149,510,874

5

Italy

69,391,472

Russia220,191,744

S. Korea

5,541,891

UK

109,955,298

6

S. Korea

61,354,528

Japan

201,985,763

Vietnam

3,009,690

Canada107,050,441

7France32,780,607

India

172,586,224

Netherlands

2,694,695

China

88,074,895

8

UK

24,980,984

UK

154,190,272

Philippines

2,570,308

Italy

71,511,493

9

Turkey18,765,358

Italy

146,440,438

Switzerland

2,110,473

Sweden71,109,514

10

Switzerland

15,773,304

Australia

145,622,009

Sweden1,740,430

Mexico70,972,853

Hardware & Fastener Components - no.56/2022

China’s Fastener Trade in 2021 (USD)

022

Taiwan’s Fastener Trade in First-half 2022 (USD)

Taiwan’s Fastener Trade in 2021 (USD)

Ranking

ImportSource2021

ExportDestinations

2021

ImportSource2021

ExportDestinations

2021

0World3,280,746,110

World

9,303,405,675

World

206,147,825

World

5,322,552,883

1

Japan

983,969,032

U.S.A

1,263,573,726

Japan

78,090,806

U.S.A

2,249,900,692

2

Germany

630,243,449

Russia544,573,376

U.S.A

35,474,785

Germany

454,994,012

3U.S.A

398,160,844

Germany

533,707,080

China

21,189,220

Netherlands

291,941,389

4

Taiwan324,224,022

Vietnam

457,539,548

Germany

14,582,412

Japan

246,072,681

5

Italy

172,577,180

S. Korea

405,583,971

S. Korea

9,414,381

UK

209,199,205

6

S. Korea

132,572,356

Japan

346,444,260

Philippines

5,401,730

China

191,243,730

7France73,700,211

India

298,269,602

Vietnam

5,375,493

Canada177,039,530

8UK

53,832,105

Italy

277,500,682

Netherlands

5,205,645

Sweden121,737,174

9

Turkey40,893,282

Australia

266,465,334

Switzerland

2,937,108

Mexico119,553,758

10

Switzerland

33,779,764

UK260,145,375

Sweden2,678,180

Italy

103,873,841

In the first half of 2022, China exported USD 5.14 billion worth of fasteners to the world, which is 1.6 times more than Taiwan’s
global export value of USD 3.18 billion in the same period. In the value of fastener import from the world, China was USD 1.47 billion
and Taiwan was USD 108 million. Taiwan demanded far less fastener import from the world than China did. China’s top 3 export
destinations were the U.S. (USD 850 million), Germany (USD 308 million) and Vietnam (USD 223 million). Taiwan’s top 3 export
destinations were the U.S. (USD 1.42 billion), Germany (USD 260 million) and the Netherlands (USD 169 million), and Taiwan
exported USD 88.07 million worth of fasteners to China. It shows that the U.S. and Germany were the top 2 fastener export destinations
for both China and Taiwan in the first half of 2022. In terms of import, the top 3 sources for China were Japan (USD 430 million),
Germany (USD 270 million), and the U.S. (USD 200 million). Additionally, China imported USD 140 million worth of fasteners fromTaiwan in the same period. Taiwan mainly imported from Japan (USD 36.17 million) and the U.S. (USD 21.42 million), and it also
imported USD 12.56 million worth of fasteners from China. Japan was the largest fastener import source for both China andTaiwan. Germany and the U.S. were respectively the second largest source for China and Taiwan.

Industry Focus >>Hardware & Fastener Components - no.56/2022

China’s Fastener Trade in 2020 (USD)024

Taiwan’s Fastener Trade in 2020 (USD)

Ranking

ImportSource2020

ExportDestinations2020

ImportSource2020

ExportDestinations

2020

0

World

2,786,542,569

World

6,959,807,809

World

157,680,579

World

3,969,360,344

1

Japan

852,790,240

U.S.A

827,330,702

Japan

61,494,765

U.S.A

1,689,801,153

2

Germany

561,700,799

Vietnam

484,775,853

U.S.A

27,844,570

Germany

340,191,792

3

U.S.A

315,945,338

Russia404,230,744

China

15,143,539

Japan

209,498,781

4

Taiwan234,702,416

Germany309,148,054

Germany

10,329,451

Netherlands

195,105,056

5

Italy

141,111,449

Japan

270,056,188

S. Korea

5,660,405

UK

136,840,671

6

S. Korea

130,805,250

S. Korea

249,571,286

Netherlands

4,058,735

China

129,131,272

7

France62,370,515

UAE

213,085,446

Vietnam

3,719,309

Canada128,760,834

8

UK

46,517,579

India

203,159,577

Switzerland

2,182,902

Sweden85,303,928

9

Malaysia

28,608,755

Myanmar199,601,983

Sweden2,033,164

Mexico77,878,026

10

Switzerland

28,247,190

Thailand

196,292,352

UK

2,017,286

Italy

70,888,895

In 2021, China exported USD 9.3 billion
worth of fasteners to the world, which is
1.7 times more than Taiwan’s export valueof USD 5.32 billion in the same period andit resembles the aforementioned differenceof scale in first-half 2022. In the value offastener import from the world, China was
USD 3.28 billion and Taiwan was USD 206
million. China’s top 3 export destinations
were the U.S. (USD 1.26 billion), Russia(USD 544 million) and Germany (USD 533million). Taiwan’s top 3 export destinations
were the U.S. (USD 2.24 billion), Germany(USD 454 million) and the Netherlands (USD291 million), and Taiwan exported USD 191
million worth of fasteners to China. TheU.S. was the largest export destination forboth China and Taiwan. As for the second
largest export destination, it was Russia
for China and Germany for Taiwan. Interms of import, the top 3 import sources
for China were Japan (USD 983 million),
Germany (USD 630 million), and the U.S.
(USD 398 million). Additionally, China
imported USD 324 million worth of fasteners
from Taiwan in the same period. Taiwan
mainly imported from Japan (USD 78.09million) and the U.S. (USD 35.47 million),and it also imported USD 21.18 million
worth of fasteners from China. Japan was
the largest fastener import source for both
China and Taiwan. Germany and theU.S. were respectively the second largest
sources for China and Taiwan.

Industry Focus >>In 2020, China exported USD 6.95 billion worth of fasteners to the world, which is again 1.7 times more than Taiwan’s export valueof USD 3.96 billion in the same period. In the value of fastener import from the world, China was USD 2.78 billion and Taiwan was
USD 157 million. China’s top 3 export destinations were the U.S. (USD 827 million), Vietnam (USD 484 million) and Russia (USD404 million). Taiwan’s top 3 export destinations were the U.S. (USD 1.68 billion), Germany (USD 340 million) and Japan (USD 209million), and Taiwan exported USD 129 million worth of fasteners to China. The U.S. was the largest export destination for bothChina and Taiwan in 2020. As for the second largest export destination, it was Vietnam for China and Germany for Taiwan. Interms of import, the top 3 import sources for China were Japan (USD 852 million), the U.S. (USD 561 million), and China (USD 315million). Additionally, China imported USD 234 million worth of fasteners from Taiwan in the same period. Taiwan mainly imported
fasteners from Japan (USD 61.49 million), the U.S. (USD 27.84 million) and China (USD 15.14 million). Japan was the largest
fastener import source for both China and Taiwan. Germany and the U.S. were respectively the second largest sources for
China and Taiwan.
China’s global fastener export grew 33.8% from USD 6.95 billion in 2020 to USD 9.3 billion in 2021, and reached USD 5.14 billion in thefirst half of 2022, having a potential to grow 7.5% to USD 10 billion for the 12 months of 2022. Despite the virus and city lockdown in the last
two years, China’s scale continued togrow, but a big concern is that the growthmargin of this year is likely to decreaseover 20%.

Caught between the domestic impact(lockdown) and foreign impact (AD tax
imposed by EU and 25% tax by the U.S.),
China was still able to perform well infastener export, because the Chinese
government provided subsidies andthe Chinese steelmakers offered highly
competitive wire prices. Furthermore,
China increased fastener export to places
other than the U.S. and Europe. This
indicates China’s impact mitigation
strategy to quickly scatter export and notconcentrate on a single market in the faceof overseas barriers. In contrast, exportingnearly 90% of fasteners to the U.S. andEurope, Taiwan can reference China’sexperience and explore overseas regions
other than the U.S. and Europe to be able
to cope with future drastic changes. The
emerging countries will become a nichemarket for both China and Taiwan in needof increasing export destinations.

Hardware & Fastener Components - no.56/2022

Taiwan’s global fastener export
grew 55.1% from USD 6.95 billion
in 2020 to USD 9.3 billion in 2021,
and reached USD 5.14 billion in thefirst half of 2022, having a potential togrow 12.7% to USD 10 billion for the12 months of 2022. Taiwan gained alarge number of orders from overseas
last year and expects to grow one foldmore than China, but this is far lessthan the drastic growth last year. For
Taiwan, the concern is that the U.S andEuropean clients have yet to clear up
their inventory; therefore, they have lesspurchasing demand for Taiwan.

025