According to Mr Feng Jinyao chairman of the China Fasteners Association that China's fastener industry, the world's largest, will consume over 6 million tonnes of steel in 2007 on an industry conference held recently in Shanghai. He also called for closer cooperation between domestic steel mills and fastener producers to help develop high value added products and improve quality.

Mr Feng noted that some local fastener producers have established strategic cooperation agreements with domestic steel producers such as Baosteel, Maanshan Steel, Xiangtan Steel and Xingtai Steel, to ensure supply of wire rods. He added that “Further cooperation is needed to meet new demand for high spec products for the construction, auto, oil and machinery sectors.”

China’s fastener production should reach 5.1 million tonnes in 2007 and top 6 million tonnes by 2010. However, the Chinese government cut the export rebate for steel fasteners from 13% to 5% from July 1st 2007 and Mr Feng believes that this policy change will affect this year's fastener exports. Nevertheless, the 2007 total will still reach 2.3 million tonnes an improvement on last year’s 2.07 million tonnes.

Mr Feng said that at present a large proportion of domestically produced fasteners are low carbon, but about half of demand is for non tempering fasteners with high strength. He added that “Through cooperation with us, Maanshan Steel is now able to supply wire rods for fasteners with a stress intensity factor of 8.8 and meeting 30% to 35% of domestic market demand.”