Taipei, May 26, 2010 (CENS)--With recovery of the U.S. real estate market spurring demand for fasteners, Tycons Corporation and Chun Yu Works & Co., Ltd., two leading fastener suppliers in Taiwan, have enjoyed flood of contract orders and seen their production lines fully booked through the end of the second quarter of this year, according to the firms.

The real estate market in the U.S. has been steadily recovering for months, driving up housing starts to a 18-month high in April. This comes as good news to Taiwanese makers in the steel and iron processing sector, especially fastener makers, who together exported around 38% of their total output to the U.S. last year.

As the production value of Taiwan`s fastener industry declined by 31% to NT$76.8 billion (US$2.4 billion at US$1: NT$32) in 2009 from NT$112 billion (US$3.5 billion) posted in 2008 due to global meltdown, Tycons is quiet upbeat to see such market booms that have helped to put the industry back on track this year. Tycons noted that its factories in Taiwan and Thailand have been running at full capacity, and have achieved maximum shipment of 1000 and 3000 metric tons, respectively, a month.

Furthermore, the firm adds, the average export price of its fasteners has grown to US$1.7 per kilogram, up about 20% from US$1.4 posted a year earlier, due partly to the recent strong market demand and partly to price hikes of raw materials.

In the meantime, Chun Yu has also benefited from recovery of the U.S. markets for real estates and automotives, stressing that its production lines have been fully booked to fill heavy contract orders for auto and construction fasteners from U.S. clients. Presently, the firm`s monthly overall shipment of fasteners has reached over 7,000 metric tons, boosting its confidence of reporting a 10-20% quarterly growth in sales revenue for the second quarter of this year. 

Unit: NT$1 million

By Steve Chuang
Source: www.cens.com