by Sergio Milatias
Editor in Chief of Revista do Parafusos
A short view about the local fasteners market in 2024
Although written in November – and therefore with incomplete data throughout 2024 – the aim of this article is to show a summary of what happened in Brazil over some industrial sectors where a lot of fasteners are consumed, and therefore are very representative for the players in the supply chain that involves screws, bolts, nuts, washers, rivets, and others, in addition to technological services, coatings, and final application.
First, is important mentioning that the production of the domestic steel sector on the Q1 and Q3 2024 was 25.2 million tons of steel, 4.26% higher than the same period in 2023, which in turn closed the year with 32 million tons.
Partially following Brazilian industrial production, among automobiles, motorcycles, home appliances and electronics products, the scenario is of very robust performances, reflecting a great end to 2024, and even better for 2025, “if nothing breaks along the way” over the economic and political macroenvironment, nationally and internationally.
AUTOMOBILES
On cars global ranking production, the Brazil are among the tops 10 group (2023 year)
1° China: 30 160 966
2° USA: 10 611 555
3° Japan: 8 997 440
4° Germany: 4 109 371
5° India: 5 851 507
6° South Korea: 4 243 597
7° Mexico: 4 002 047
8° Spain: 2 451 221
9° Brazil: 2 324 838 (expected growth of 7% for 2024)
10° Thailand: 1 841 663
Is estimated that each passenger car (not electric) requires 30 kg of fasteners, which indicates an apparent annual consumption around 7,4 million tons of screws, bolts, nuts and similar, produced in and outside Brazil. In addition, there are a robust consumption from aftermarket, currently orbiting 110 million vehicles in circulation in the country.
Brazil, and other countries, have not yet recovered the levels produced in 2019. On the other hand, the car prices have risen significantly. By comparison, until 2020 in the US there were 17 car models under US$ 20 thousand. Today are only six, according to https://jalopnik.com/.
Added to this, car purchases by young people are falling, who in turn increasingly choose to use public transportation and app-based taxis. It is also worth noting that the drop attributed to high prices is significant in Brazil, where the average income is low, currently at US$ 10.3 thousand per capita, even though it is the 8th largest global economy in absolute numbers, US$ 2,173 trillion in 2023.
MOTORCYCLES
Unlike the segment of 4-wheeled or more vehicles, the 2-wheeled sector, motorcycles, is living its golden years. After producing 1.573 million units in 2023, surpassing the 1.511 million in 2014, before the 2015-2017 recession, between Q1-Q3 2024 more than 1.323 million were assembled, 11% higher than the same period in 2023, an expansion apparently driven by the growth of delivery services in the country. Projecting to close this year with 1.745 million motorcycles, and multiplying 6 kg of fasteners per unit, apparent consumption in assembly lines should be around 10 thousand tons, excluding the aftermarket involving 32 million motorcycles in circulation in the country.
HOME ELECTRONIC APPLIANCES
Between the Q1 and Q2, sales of home electronic appliances in Brazil increased by 34% compared to the same period in 2023. This is the highest level over the historical series, according to Eletros Associations Manufacturers to Forbes Brazil website.
On average, 12.9 million units has been sold per year, specifically among washing machines, stoves and refrigerators, and in the recent Q1 and Q2 there were 7.3 million more units, 16% more than the same period in 2023. Represented by 33 companies, this sector is equivalent to 3% of the national GDP, with 200 thousand direct jobs shared among 51 factories in the country.
In short, all these sectors are strong consumers of fasteners, and note that we did not mention the construction and renovation sector of residential, commercial and industrial properties, which represents around 10% of the GDP, and we not to said here about the Oil & Gas, energy from hydroelectric, wind power, and solar sectors.