New ways to steel trade business

According to relevant data shows, represented by maanshan iron and steel enterprise profit since July, prices went up and up most of the iron and steel enterprises of steel, iron and steel enterprise operating condition gradually warming. Under this background, the steel trade and business operation conditions of whether there is a warming trend? Recently, the author on this issue had an interview with Shanghai steel trade chamber of commerce, vice President of Ren Qingping.

What time can steel trade, “pick up”

Talk of iron and steel enterprises operating the cause of the warming, Ren Qingping analysis thinks, this kind of phenomenon is due to iron and steel enterprise’s ability to control their operating costs increased. On the one hand, in iron ore prices period, some large iron and steel enterprise procurement of iron ore. But along with the transition of the iron ore market supply and demand situation, iron ore prices decline gradually, iron and steel enterprises without a large amount of reserves of iron ore. In the past, some steel mills are usually reserve 3 ~ 6 months demand for iron ore, generally only the amount of reserve 1 month now, and even less. Therefore, in terms of raw material costs, capital takes up the proportion of reduced. On the other hand, with the increase of steel capacity, freight is on the decline. In this case, the transportation pressure is better than the original strain, which makes for iron and steel enterprise transportation cost control ability. At the same time, the iron and steel enterprises according to the market demand as the guide, through the deployment of resources, the internal production mechanism to profit products, gradually increase the profit.

Iron and steel enterprises through the above ways to reduce costs in order to survive, so for the steel trade and business, which from the aspects of reform, to usher in “signs of recovery”? The Ren Qingping said: “at present, the distribution, agency, finance and trade, moving bricks and other traditional trade way is not able to become a steel trade industry real way out.”

Ren Qingping said, distribution of relying on the market price for profit, the current distribution business involving steel trade enterprise is not much, especially in the steel trade industry nowadays under the background of recession, distribution model unsustainable; Agent which is through the ex-factory price and the market price difference and take senders rebate money making iron and steel enterprise, the current domestic steel enterprises agent system is not perfect, and for iron and steel enterprises, the agency model is just the ways to reduce the pressure on their sales, with traders and not a formal cooperation models, for the lack of legal consciousness is the steel trade is bad; By information asymmetry and ever gain profit steel trade company, is also due to electricity emergence mechanism of steel price transparency makes it difficult to operate; For pad, by giving customers the financing model of money, in the context of the current credit crisis of all kinds of, steel trade, more difficult to support that have too much money. All these traditional trade way, so to speak, has come to an end. But before the new model have not yet fully formed, steel trade, business is hardly “thaw”.

Based on the experience of the developed countries steel trade business

At present, in the face of the development of China’s steel trade business, it make people think in the developed countries of the steel trade and business is in what state of existence and development? To this, Ren Qingping Japan, Europe and the United States steel market in three countries and regions are analyzed.

Ren Qingping said that Japan’s steel trade circle operation is based on large steel trading company is given priority to, iron and steel industry to the whole country have larger role. By more powerful capital bonds, funds, and association with major iron and steel enterprises, large quantities of quantities to order to get the iron and steel enterprise resource advantage price, again by another capital hub to some processing and distribution center for equity participation, holding to grasp the whole steel processing and distribution channels. So Japan is big trading company, more independent small trade company in proportion to the market is relatively small. Combined with the large trading system influence technical standards, system imported from Japan, so the whole trading system is relatively complete, less impacted by the foreign markets.

While Europe is little bigger traders. In the process of steel in the evolution of the trade circle, the original large trading companies, small-scale importers and traders gradually evolved into a multinational, mass of the processing and distribution company. Some steel trading company gradually evolved for the machining of the networked distribution center. It is understood that Europe has formed a relatively independent and several involved around the country’s leading processing distribution network center, the center brings together trade, procurement, steel structure processing and metal processing as one of the functions, can even the manufacturing of metal components such as precision instruments, gradually replaced the pure nature of the trade and general trade company.

Ren Qingping, talked about the traders in the United States, said: “the United States due to the large market, is a broad, there are still some wholesalers, of course, most of the industry and trade company, is still covers the processing and distribution business. In addition there are a number of simple trade processing enterprises and traders.” Thus, steel trade, developed countries relatively perfect development pattern, this for the development of China’s steel trade business has strong reference significance.

“The economies of the steel market has experienced the peak, platform stage, mature stage, and China’s current steel market is close to the platform period, the trend of the development of the forward is inevitable.” Ren Qingping said.

With the development of the vision to find a way

For the steel trade and business, the real way out in where? Since the steel trade market in steel trade, has a group of traders to be eliminated, since the crisis after the market sweep the remaining traders how should continue to survive? The final steel trade industry, traders will still exist? Will exist in what form? These problems can not help but become steel trade merchants need to face the problems and introspection.

“Steel trade business in a more macro perspective to see the future of the industry, find the way out of the industry, if run counter to the industry development trend, make the original investment in resources and produce loss, enterprise easily eliminated by the market. What’s more, now the competition between electric business platform that steel prices more transparent, more and more iron and steel business enterprise gradually to the direction of the” terminal “, so traders under strain.” Ren Qingping said, “for the same period of Japan and the European and American countries, however, its steel trade circles for the development of China’s steel trade has strong reference significance to business.”

“Japan as a trading empire, has strong support to the big houses, big houses and steelmakers have deep roots, while European steel trade circle combination between industrial chain, the development mode of high efficiency. Such as steel can be purchased directly from the factory, including mechanical parts can be in this order, customer don’t have to worry about after-sales processing problems, the social division of labor is fine. However, most of the Chinese traders for low investment, and other industrial chain to form the network system, so for Chinese traders, with some machining distribution institution combining network, is one of the directions of the sustainable development of the steel trade business in China.” Ren Qingping said.

“From Japan, Europe and the United States steel trade, development advantages, take its essence to its dregs, is China’s steel trade business should learn, however, on the basis of the above two types can be combined with electricity, complete industrial chain integration is more vitality. Especially the warehouse processing and distribution logistics with electricity, so there is a new profit model is not only beneficial to the industry, also makes the harmonious social division of labor, market operations more efficient, steel trade circle more cohesion and vitality, therefore, conform to the development trend of China’s steel market.” Ren Qingping said.