The screw industry also struggled because China's economy slowed down
Fasteners, basic components are easy to overlook but are ubiquitous in industrial operations, from assembling furniture to building a skyscraper or overpass.
In China, this industry, known as the "rice of industry", is compared with the staple grain of the nation's diet.
Yong Nien District, Handan City, Hebei Province, is China's most important "industrial rice bowl". Handan, about 450 kilometers south of Beijing, produces and sells more than half of the screws used in China's industry and construction each year. The demand for hardware in Yong Nien reflects the needs of downstream industries, closely following the changes of economic situation in China and many other countries around the world.
"Overall, our order volumes this year are down from 2018," said Zhao Yubo, chairman of Hebei Fasteners Industry Association and general manager of the Feida Standards Factory in Yong Nien. .
While demand for screws from construction companies has been somewhat steady, machine makers have placed less orders, Zhao said.
Yong Nien District, Handan City, Hebei Province, is China's most important "industrial rice bowl". Photo: SCMP
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China's manufacturing activity declined for much of the year, with industrial production growth slowing in October to the second lowest level in more than 17 years. Although manufacturing air rebounded for the first time in half a year in November, it is still too early to tell if the industry bottomed out, with margins at Chinese manufacturers down 4.9% from May. 1 to October compared to the same period last year, according to data from the National Bureau of Statistics.
Firms in Vinh Nien gave different forecasts amid slowing domestic growth and international barriers.
"In November alone we shipped more than 200 tons to Nantong, eastern China," said Li Bo, owner of Jinfan Fastener Manufacturing. “Orders are increasing every year. Recently there have been orders for bridge studs ”.
"Currently the country is strongly developing infrastructure and overpasses to solve urban traffic problems".
One afternoon at Li's factory in southwest Yong Nien, dozens of workers were busy mass-producing welding studs that would be used in bridge construction.
Some paced back and forth to track the bar presses on studs, while others adjusted the newly purchased automatic handling machine. Elsewhere, a group of women sitting on small stools manually tap metal beads on the ends of each nail for a custom order.
The metal noise in the factory is part of the result of a push for government funding for many infrastructure projects to support growth amid the trade war with the US
China's 18-month long tariff war with the US affects both production and exports. Although Beijing implemented strong stimulus measures to spur record-low growth, measures to encourage infrastructure investment include easing financial rules for municipal bonds and Reduce capital requirements for projects.
Beijing and Washington agreed to a first-stage trade deal earlier this month, halting tariff increases and cutting some of the existing tariffs.
But both Li and Zhao say the trade war has not had much of an impact on their businesses, showing that the pressures of more than 1,600 fasteners in Yong Nien have largely come from within the country.
All information about the product: temperature humidity test chamber
On a journey to lead China's fasteners industry, companies in Yong Nien have gained market share from rivals in southern China by trading profits over the past three decades, with an advantage of nearly one. large number of steel mills, the main source of raw materials for production.
About 340,000 people work in the screw industry in Vinh Nien district, which makes up more than a third of the local population. Out of 1,600 screw companies, about 200 have an annual output worth over CNY 100 million (USD 14 million).
But the concentration of many companies has led to increasingly fierce competition that some businesses hesitate to invest in developing new products.
“Vinh Nien is home to many smart people, once the product is profitable, everyone will want to do it. If we invest in a new profitable product, in less than two months other companies will join, ”said Zhao Heng, general manager of Hengcheng Fastener, one of the largest enterprises in China. , said.
Another big company, Yanzhao Fastener Manufacturing, said prices were nearing a bottom because of the fierce competition.
"The domestic market is almost saturated," said Chen Yongke, the company's general manager. “Domestic orders have not increased strongly, industry outlook.
