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Taiwan CSC Production & Sales Conference with Fastener Business Owners
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2021-01-25
     CSC reported the status quo of global economy, steel price and fastener export in a Production & Sales Conference held on December 2, 2020. IMF estimated in October 2020 that the world’s economic growth rate would return from minus 5.2% in June 2020 to minus 4.4%. The U.S. third-quarter GDP reached 33.1% above the market’s expected 32%. The EU upped its 2020 GDP growth prediction from minus 8.3% to minus 7.4%. Despite negative GDP growth in Singapore, Malaysia and Thailand, the decrease has shrunk 50% over the second quarter of 2020. Vietnam in particular was the best performer with 1.6% economic growth, becoming the beneficiary under the U.S./China trade war with the potential to rise as the 4th largest economic entity in ASEAN, following Indonesia, Thailand and Philippines. Taiwan expected its 2020 GDP to grow at an average 3.5%, and potentially further up through 2021. China’s third-quarter GDP in 2020 was up 4.9%, looking at an estimated 1.9% growth for the whole 2020 while putting future focus on boosting domestic demand.
 
     The American steel price shifted into high gear at USD809 per ton in November 2020 from USD500, the lowest in July 2020. The COVID virus that is contained less than desired as well as strong automotive and construction demand contribute to continuous steel price hike as a result of insufficient supply. Europe (around USD523/ton in average) and Southeast Asia (USD585/ton) both face a strong domestic demand that leads to deficient supply that drives up steel price. It is conceivable that steel demand is increasing while short-term steel supply from steel plants is limited. CSC expects the steel price to remain as is through to Q1 2021.
 
     According to the statistics by Taiwan Industrial Fasteners Institute (TIFI), Taiwan exported 1.171 million tons of fasteners to the world in the first 10 months of 2020, down 10.56% over the previous period and the average price dipped only 0.49%. Particularly, export of wood screws and self-tapping screws had a double-digit positive growth but the unit price dropped. In contrast, bolt and nut export had a double-digit negative growth but the unit price was raised. Primarily export-oriented, Taiwan fastener industry’s construction fasteners are still looking up as the pandemic stimulates the American and European  construction demand.
 
Product
Export Volume
Unit Price
Wood Screws
+16.55%
-3.13%
self-tapping Screws
+19.54%
-4.77%
Bolts
-15.01%
+0.32%
Nuts
-25.11%
+4.69%
 
     Given that Taiwan’s domestic market remains to function as normal, and that some fastener companies says to have got rush orders since last July, overseas orders have apparently warmed up since last October. There was an obvious sentiment of hope floating around the Production & Sales Conference as industry participants were conversations. Meanwhile, with a prospect of raising Q1 steel price, some industry participants suggested that CSC should properly factor in export exchange rates to ensure fastener companies’ survival in the market.
 
Wire Import Statistics from Jan. 2020 to Oct. 2020 (Unit: Ton, Source: CSC)
Country
Low Carbon Steel
Medium Carbon Steel
High Carbon Steel
Alloy Steel
Total
South Korea
32,316
46,304
2,896
18,749
101,032
UK
55,589
-
4,483
7,225
71,812
Russia
59,443
-
-
-
60,054
Japan
7,375
466
2,909
15,364
35,768
Vietnam
17,142
-
295
16,217
33,681
Malaysia
24,626
-
1,850
222
28,028
China
-
-
-
20,611
20,611
India
14,130
-
4,867
534
20,593
UAE
11,175
-
-
5,451
16,626
Brazil
6,751
-
-
7,211
14,080
Other Countries
7,669
-
5,657
1,267
17,417
Total
236,216
46,770
22,957
92,851
419,702
Total During Jan.-Oct. 2019
203,833
31,736
17,655
97,815
379,764
Change (%)
+16%
+47%
+30%
-5%
+11%
Fastener Products Export Volume from Jan. 2020 to Oct. 2020 (Unit: Ton, Source: TIFI)
Export Destination
Export Volume
Export Proportion
Change
U.S.
535,623
45.72%
-6.34%
Germany
99,078
8.46%
-12.91%
The Netherlands
56,231
4.80%
-18.42%
Japan
55,680
4.75%
-10.47%
Canada
38,377
3.28%
-14.93%
Fastener Products Unit Price from Jan. to Oct. 2020 (Unit: TWD/Ton, Source: CSC Marketing Research)
Month
Year
January
February
March
April
May
June
July
August
September
October
November
December
2018
82,577
82,682
83,126
83,416
83,769
85,518
87,113
87,741
88,830
87,792
87,364
86,363
2019
87,080
86,427
86,506
88,335
87,709
89,746
89,437
89,759
89,357
88,828
88,270
86,958
2020
86,490
84,446
84,240
85,899
83,091
82,550
83,010
82,705
85,337
82,871
-
-
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2021-01-26

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