Many Taiwanese Fastener Manufacturers Pointed out That Orders for July and August Shrink

Many Taiwanese fastener manufacturers pointed out that orders for July and August shrink since late May due to the European debt crisis. Considering the slow recovery of the demand in the second quarter and the decreasing orders, fastener exports in Taiwan for the third quarter is expected to decline or merely remain the same level with the second quarter. Some manufacturers anticipated that shipments in Q3 are likely to decline compared with Q2, and orders for July and August will decrease compared with May and June. In addition, Taiwan's manufacturers currently find it quite hard to receive new orders because the wire rod price cut of Taiwan's China Steel Corp. For September was less than expected. However, they can remain profitable for the high value-added fasteners. Steel prices are expected to keep dropping in the near future and confidence of manufacturers remains low. Orders are only scheduled for the next two months while orders in 2011 were scheduled for next four or six months in season. Analysts commented the peak of Taiwan's fasteners exported to EU has been the past plus the slow recovery of US economy, the total export value of Taiwan’s fasteners is forecasted to decline 3 percent~5 percent to NT$1, 120 in 2012. Taiwan's fastener output reached NT$1, 264 with export value of NT$1, 175, up 15% over 2010, breaking the record high for the second straight year. Source: ChinaFastener