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Steel trading downturn and become network

    With a large losses of steel enterprises, many steel trading circulation enterprises, and terminal steel enterprises has started plotting to transformation. The most obvious is that many steel trading vendors have noticed the network marketing business opportunities, try water network marketing.
    China steel association offers that, according to a report in the third quarter of this year the steel industry in the industrial growth with the sales profit of just 2.2%. Our country steel industry rely on extensive growth mode which seems to have come to an end.
    The personage inside course of study says: “since this year, real estate, automobiles, home appliances industry were farewell to last year’s market situation, even hot, steel tube trading companies in the background of moderate tightening, will have to sale their steel to less than the cost of purchase price sales.” In such circumstances, how to adjust the industrial organization, changing the marketing idea, be the biggest problem to all steel enterprises.
    November 5, with the theme of 2012 China steel market situation prospect, the 4 th Chinese steel trade summit forum held in Zhengzhou, thousands of enterprise in the industry and industry experts participated in the meeting to discuss the steel industry transformation and opportunities
    Industry adjustment is increasingly urgent. According to the steel industry “12th-five years” development plan of all, that our country crude steel and tinplates’ demand may be in the peak floater area during the “12th-five years” development plan, then gradually growth will slow down. At the same time, the industry will present the low overall growth, low profit operation situation.
    Accordingly, in the crude steel outlook has started to show tired at the same time, the personage inside course of study thinks generally, high performance steel varieties are very scarce, and still has a greater investment value.
    JiaGongYu, the general manager of Angang, thought that: “in the long run, China’s steel industry will be into a long-term high output, high cost and low efficiency development channel.” In the face of such market situation, steel enterprises should be how to deal with?
    China steel structure association deputy secretary-general LiuWanZhong said last year, steel structure manufacturing enterprise production capacity has 35 million tons above. Now steel structure to basically have two head: high-end of steel structure used in a temporary or long-term high quality construction, the construction of the low end products are generally used for general factory buildings, housing construction, including common gas station, charge station, etc.
    In LiuWanZhong’s opinion, whether Tianjin experience or Sichuan after earthquake reconstruction experience, this easy to use and easy recycling of steel structure building materials are very wide prospect of market.
    And in August 18, housing and rural construction released construction “12th-five years” development plan, clearly points out the increase total amount of steel structure in the proportion of building structure.
    “Steel trading enterprise in the present for internal conflicts of good enterprise shall adjust the industrial organization and adjust the transformation.” Tianjin Runfei trade limited company President LiChunLiang told reporters. He said: “in the current steel market, not only supply and demand decided the price, price from nearly two years of fluctuations we can see that actually investment on the price of influence is very big. The excessive investment the low added value, low technical content of steel pipe will lead to surplus supply and gliding down prices.” At the same time of network opportunity in the adjustment of product structure highlighted, in the iron and steel enterprise sales of circulation are also appear upheavals.
    According to the Chinese steel nets chief operating officer LiYuLiang analysis, with a large steel enterprises losses, many steel trading circulation enterprises, and end with steel enterprise have started plotting to transformation. The most obvious is that many steel trading vendors have noticed the network marketing business opportunities, and try the network marketing.
    From China steel nets information shows that in the April 22 to October 31, the time of 6 months, 29860 iron and steel manufacturers and trade enterprise have on-line registered.
    LiYuLiang told reporters: “in hundreds of enterprise totally click on 1000 times every day,  the six month cumulative click 179000 times, realize the total trade has also reached 10 million tons every day.” Henan zenith steel Co., LTD chairman YaoGongChao said: “steel trading industry will face the market demand and reduce the cost of increased situation, profitability has also over the windfall profits of last several years into the era of small profit and even loss. If the enterprises do not adjust management ideas, solid sales channel, survival environment , they will face more challenges.” Which of them, Angang is one of the earlier user of enterprises to use network platform to sale their products in this industry. According the data of the website of Angang, released in 5th November, through the Chinese steel nets spot platform, product information of Angang, which have been  announced, have been accumulated click on more than 100000 times, sold 26000 tons of steel.

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