Are Fastener Prices Going Up In The Near Future?

With the world still struggling to shake off the effects of the global recession, it seems that prices of everyday items keep going up.

Food, gas and any other non-discretionary items continue to increase in price with no end in sight.

So what about fasteners?

How are they affected by the world wide slow down and will the cost of purchasing them go up in the near future?

According to an article on the IFW web site—a freight and logistics news site—the price of freight is going up. Here is a link to the article titled “TSA says transpacific rate hikes are justified.”

As such, yes, you would expect the price of fasteners to go up since the cost of freight is a major contributing factor to the end cost of imported product.

In addition to rising freight costs, the US dollar continues to weaken against the Chinese currency meaning that goods will be increasingly expensive to buy from overseas.

So what does all of this mean?

It means that without a doubt the price of wire rod and, as a result, fasteners, has to go up in the near future as transport costs, currency rates and overall inflation continue to change the way we buy things.

Are you prepared for the price increase? Have you already started seeing increases? Let us know what you’re seeing in your local market.

We want to hear your story!

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2 Responses to Are Fastener Prices Going Up In The Near Future?

  1. Expert says:

    Hi there Chris and thanks for your comment!

    You make a great point about the BRIC countries doing well.

    The problem, at least for us over here in North America, is that we are buying product that is priced in USDs. Since the USD is going down in value, especially against the Chinese Yuan, it is making it more and more expensive for North American fastener buyers to get the products they need.

    Once again, the old mantra of “he who buys best, sells best” comes into play and with rising prices, that isn’t always an easy task!

  2. Chris Nissen says:

    I’m not convinced that there is a worldwide economic slowdown. The BRIC countries (Brazil, Russia, India and China) are booming, as are many of their close neighbors.

    There is no question that demand for fasteners is NOT booming here in North America, nor is it in Europe. However, with the rest of the world’s econonies basically running on full tanks, we will continue to see inflation in the price of fasteners (and probably just about everything else).

    As for shipping costs, we are seeing the prices of containers from Asia on the rise once again. Depending on the type of fastener product, ocean freight to North America represents 10%-25% of the cost of goods. This is a big chunk of the general cost increases we are experiencing.

    IMO, it will all become more difficult before it gets better.

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