Demand in China to grow 10.7% yearly through 2013 Demand for industrial fasteners in China is projected to increase 10.7 percent annually to 74.2 billion yuan in 2013, driven by rapid growth in manufacturing production, especially industrial machinery and motor vehicles. Increases in electrical and electronic product manufacturing will also provide growth opportunities, although these gains will be less pronounced than over the past decade. In addition, industrial fastener demand will be supported by expansion and modernization of China’s infrastructure, which will create new opportunities for sales associated with nonautomotive transportation and fabricated metal production. Moreover, rise in demand for higher-grade industrial fasteners will boost overall market value. However, the use of new materials and manufacturing methods that reduce the number of fasteners required in durable goods production will restrain sales growth to some extent through 2013.
Externally threaded fasteners to pace standard types Standard fasteners -- externally threaded, internally threaded and nonthreaded -- account for 98 percent of Chinese industrial fastener demand. Externally threaded fasteners are the dominant standard fastener type, accounting for three-fifths of standard fastener demand in China in 2008. They have resisted inroads made by alternative joining methods such as adhesives or welding and will grow at a slightly above average rate. Internally threaded types will increase at a slightly below average pace while nonthreaded types will post the slowest gains at 9.9 percent annually through 2013, affected by decelerating growth in construction activities. Sales of aerospace-grade fasteners will outpace advances for standard fasteners, rising 13.4 percent per year through 2013. Demand will be spurred by continued government investment in infrastructure, aerospace industries and national defense, all important markets for aerospace-grade fasteners.
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OEM, construction markets to outpace MRO applications New demand for fasteners in the original equipment manufacturing (OEM) and construction markets will outpace that of maintenance/repair/operation (MRO) markets through 2013. OEM will remain the largest market in China, accounting for over three-fourths of total fastener demand, with new sales stimulated by rapid growth in the industrial machinery, motor vehicle, and electrical and electronic product markets. In addition, increasing technological capabilities in durable goods production and continued foreign investment will boost OEM fastener demand. Demand for fasteners used in construction applications will be driven by government funding for largescale infrastructure construction and rising use of higher-performance fastener products in nonbuilding construction.
Export growth to decelerate Shipments of industrial fasteners will increase 11.0 percent annually through 2013, supported by government policies to boost domestic durable goods production. However, export growth will decelerate through 2013, impacted by antidumping duties imposed by the European Union and Canada. Imports will continue to account for a sizable share of total demand for higher-end fasteners, driven by rising production of advanced products such as engines and turbines. However, improving domestic product quality and increasing production capabilities will limit imports from growing at a faster pace.
Study coverage This new 181-page Freedonia industry study, Industrial Fasteners in China, is available for $5200. It presents historical demand data (1998, 2003, 2008) plus forecasts for 2013 and 2018 by product and market. The study also considers key market environment factors, assesses the industry structure, evaluates company market share and profiles 34 competitors.
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