1 thought on “How to improve profit in the steel trade industry”

  1. What are the ways to improve profit margins?

    The face of the struggling situation of steel traders struggling in the gaps, Yang Guohong, president of the Beijing Federation of Industry and Commerce Metal Materials Industry Chamber of Commerce, called on: “Steel manufacturers must recognize that we are also enterprises, we will get it, we take it, we will get it. Thousands of millions of funds are made of steel, and tens of thousands of tons or even hundreds of thousands of tons are made a month. We are not playing. We also have to survive. We must also pay taxes and support employees. We must create value for enterprises. Go. “This is not to say that the main” culprit “of the steel trade dealer has no profit is steel mills, but so far, the steel mill is still ignoring the existence of steel traders, the clause of its overlord, and the laws that are still ignoring the contract. Sexuality and seriousness, and still ignoring the market law, watching the steel traders in the inside when the price is inverted. Is this a normal business behavior? Is this a normal market economy? This is really sad!

    The profit margin of steel traders has policy factors, market factors, technical factors, self -operating factors, and many other factors. This is obviously a short article that cannot be included nor to explore thorough complex issues, but the reporter of this magazine still provides the majority of steel traders on the experience and practices of some companies interviewed. Essence

    It is to choose steel production enterprises carefully. Chairman Chen Ping believes: “When the steel trade dealers choose the steel factory, don’t think that the larger the steel mill will be better. Don’t just stare at it. You must choose the price policy. The best is the best, and at the same time, do not hang it on a tree, one more choice will have one more opportunity.

    It is the large -scale business, comprehensive service, and adopting the practice of unified purchase sales to the super terminal model. This is the practice of large -scale steel trade enterprises with strong capital strength, especially state -owned enterprises. Through the national channel layout, they have established procurement of supermarkets, small profits and extensive sales through large agents, large processes, small and medium users and resource -free traders. The operating advantage jumps out of the circle of low -level competition, so that its profits have a certain guarantee.

    three is industry segmented, industrial chain, and develop to a specific type of customer model. Based on the analysis of the market, they chose a certain segment industry group as the main service target, and improved the integration and concentration of the steel industry chain to enhance the comprehensive service.

    The four is product specialization, diversified services, and develops to operating varieties with a complete model. By establishing a model of a specialty store, they make a certain type of product specializing in and to serve customers with a wide range of products. For example, Hebei Langfang Zhengtai Materials Co., Ltd. is a specialty in the operation of H -shaped steel, and soon becomes a leader in the industry.

    Five is the development of product customization and the development of special customers to serve special customers. For example, Shanghai Deer Metal Materials Co., Ltd. started fine processing of special specifications for end users four years ago and achieved great success. These enterprises have served domestic and international customers to provide domestic and international customers to customize the service of high -value -added products for proxy processing steel in China and international customers.
    Is are regional processing and distribution, comprehensive agency procurement, and developing to regional processing and trade integrated models. By establishing or joint steel processing centers, they established and jointly distributed vehicles to provide services for enterprises with extensive and in -depth procurement, processing, and distribution of enterprises in the region.

    is a pole to the end, develop direct supply customers, reduce the cost of intermediate links, and increase profits. They used the advantages of funds and corporate brands to vigorously develop and cultivate direct supply of customers, established a good strategic partnership with customers, seized end customers, grasped market initiative, and achieved a win -win situation with customers.

    eight is export. Some large steel trade enterprises such as Minmetals and Sinosteel have their own export channels, and even established their own work institutions abroad. Small and medium -sized steel trade vendors have also carried out export business through other channels. However, due to the toss of “anti -dumping and anti -subsidy” of some developed countries, and the state’s successive measures such as reducing export tax rebates, export licenses, and export tariffs for steel exports have been introduced, steel exports have been significantly cooled.

    This nine is “expanding the industrial chain”. Expanding upstream is the raw auxiliary materials required for opening iron ore, selling coke, selling steel production, selling billets, etc., and the downward is processing and distribution, logistics services, steel trading markets, and so on. As for those companies that are under the guise of steel operations to do real estate industries, they have faded out of this industry and are not in the scope of discussion in this article.

    This tenth is to carry out steel electronic transactions. Online steel supermarkets and steel futures are about to become a development trend. Although the relevant national departments have not really turned on green lights on steel futures, as a convenient and fast -moving modern steel trading model, it will definitely enter the normal of the steel trade industry. In business activities.

    eleven is to strive for the right to speak and establish the status of steel traders in the steel industry chain, which is the key to improving the profit of steel traders. Yang Guohong, president of the Beijing Metal Chamber of Commerce, put forward the idea of ​​”steel agency system” more than once: the factory price and sales price of the steel factory are formulated by the steel mill. Essence The benefits of doing so can not only change the current situation of steel mills confrontation with traders, achieve win -win cooperation in manufacturers, but also promote the stability of the steel market. Xin Xile, vice president of the China Metal Materials Distribution Association and general manager of Sinosteel Group Sinosteel Corporation, also agrees with this view. He said: “The agency and disguised proxy system is one of the means for steel trade enterprises to maintain a certain profit.” Many steel trade vendors have also issued a call for the agency system many times, but no steel mill has been adopted so far.

    The industry experts have proposed the “Five Ring Concentric Principles” from a technical perspective: the core layer target market ring -the close layer target market ring -loose layer target market ring -edge layer target market ring ——The radiation layer target market ring.

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