How hardware fasteners respond to market changes
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August 01 12:48:27, 2025
In the broader manufacturing supply chain, fluctuations in raw material prices inevitably impact the fastener industry. However, there is no one-size-fits-all solution to these challenges. The future of the fastener sector lies in addressing core issues such as the transition from low-end production capacity, optimizing procurement timing for cost-effective production, and reducing overall costs while conserving resources. These are critical questions that companies must confront head-on.
As raw material prices continue to rise, businesses that remain passive risk being left behind. To survive and thrive, companies must take proactive steps—innovating internally, exploring new markets, and strengthening their competitive edge. Two primary strategies for cost reduction include minimizing the use of expensive alloying elements or substituting them with more affordable alternatives, and streamlining manufacturing processes. For example, using non-tempered steel can reduce heat treatment steps in bolt production, while free-cutting steels improve nut machining efficiency.
The adoption of advanced technologies in China’s automotive industry has accelerated the use of new materials like cold heading steel. Some high-strength fasteners have even begun to follow international material standards, signaling a shift toward resource-saving and sustainable development. In the next 3–5 years, the development of specialized bolt steels is expected to gain significant attention, especially as raw material prices soar.
Looking ahead, key national projects such as high-speed rail, aerospace, highways, and airports are creating new opportunities for high-end fastener manufacturers. Boeing plans to add 3,400 aircraft over the next two decades, while the National Development and Reform Commission has allocated 800 billion yuan for urban rail transit projects in six cities. With 36 cities planning urban rail projects, the total operating mileage is expected to reach 6,560 kilometers by 2020. This surge in infrastructure demand will significantly boost the need for high-strength fasteners, including titanium alloys, helping companies move away from the "low-end" label.
The most common themes among hardware fastener companies today are "transition" and "upgrade." Yet, under these transformations, many Chinese fastener firms face rising raw material costs, increased labor expenses, and pressure to raise product prices. However, price increases depend on technological advancement and brand value, which require continuous investment and innovation. This presents a major challenge for small and medium-sized enterprises, which must find ways to survive in an increasingly competitive environment.
Historically, the fastener industry has experienced saturation during periods of market growth. China produces about a quarter of the world's fasteners, but most are low-grade and low-strength products, with standard items below 8.8 accounting for 45–50% of the market. In the current climate of high raw material prices, overcapacity in low-end parts has become a major obstacle to industry growth. Excess inventory strains working capital, pushing companies to seek new ways to convert costs into profits. This means investing more in technology and leveraging superior capabilities to access broader market opportunities.