China's Hardware Products Export Challenges and Opportunities in 2011

In recent years, the output of many of our hardware products ranks first in the world, and many export varieties have a very large share in the global market, which has an increasing impact on the world's hardware products industry. However, since the fourth quarter of 2008, the global financial crisis has had a huge impact on export-oriented companies. Many export orders have “evaporated”, and even some of the export contracts that have been paid for are also returned on various excuses. In this process, China's major export products of hardware products such as tool hardware, architectural hardware, locks, knife and scissors, zippers, etc. are the most affected. In the past year of 2010, with the recovery of the international economic situation, China’s hardware products also experienced a recovery growth. In 2011, the export of Chinese hardware products was both a rare opportunity and a difficult challenge.


1, hardware products export tariff agreement tax rate continuation

Since January 1, 2010, China has further adjusted the import and export tariffs. In this tax rate adjustment, China has begun to implement the agreement with ASEAN, Chile, Pakistan, New Zealand and other countries. The above countries will also comply with relevant agreements. In 2010, the corresponding treaty tax rate was applied to our products. The implementation of the treaty tax rate will benefit many industries, including hardware products, and import and export companies.

2. The world economy continues to recover In 2011, the world economy will continue to “warm up”, the international market demand will continue, demand in emerging markets such as South Asia, Eastern Europe, Russia, and the Middle East will grow rapidly, while the traditional hardware exports to the European Union and the United States Local companies in the market have not yet fully recovered. China's hardware products companies are expected to increase their share of exports.


1. Increase in the cost of raw materials for hardware products The prices of raw materials in the recent hardware products industry have risen significantly or are expected to rise: copper prices have been soaring since last year; long-term negotiations for iron ore are likely to lead to “crazy stones”, leading to Steel prices have skyrocketed; aluminum, zinc and various non-ferrous metals also have strong expectations of price increases; oil and other fuel prices are also rising; the overall rise in raw materials will significantly increase the cost pressures of hardware companies, resulting in little profit Space is further compressed.

2. Frequency gap in labor demand of hardware products companies The labor demand gap that began in early 2010 has continued until the end of the year and is likely to continue in 2011. All provinces and cities have adjusted the minimum wage standard one after another, resulting in an increase in wages for employees of hardware products companies. Even so, some companies still can't keep people. Staff turnover is common.

3. The appreciation of *** and inflation have caused the pressure on hardware products to increase greatly. Recently, *** has experienced great pressure for appreciation, resulting in a decrease in the competitiveness of export hardware products in the international market. A lot of hardware products foreign trade personnel reported that the company is currently not accepting long-term orders, especially long-term orders for exports to Europe and the United States, emphasizing some short-term orders, because the company is concerned about the losses caused by exchange rate settlement and the narrowing of profit margins. Over time, the survival of hardware manufacturing companies will be severely challenged.