Abstract This is the worst era and the best. “The current steel comprehensive price index has reached more than 60 points. Since the highest point in 2011, the price of steel has been lowered all the way, which means that the price of steel is now 60% in 1994.†Last weekend...
This is the worst era and the best. “The current steel comprehensive price index has reached more than 60 points. Since the highest point in 2011, the price of steel has been lowered all the way, which means that the price of steel is now 60% in 1994.†Sponsored by China Metallurgical Planning Institute last weekend. At the “2015 Iron and Steel E-Commerce Summit†hosted by Stencil, Wang Yingsheng, deputy secretary-general of China Steel Association, threw out a set of data, revealing the current difficulties of the steel industry.
How to live in the cold winter of the steel industry is a common problem in front of every steel company. After more and more steel traders have gradually disappeared, the gradually accepted steel e-commerce has become a transformation and upgrading of the steel industry. An important way.
Steel mills are under pressure at both ends
Wang Yingsheng revealed that from January to May 2015, the main business of key steel enterprises lost 16.5 billion yuan. From January to May, the iron and steel enterprises of the association achieved sales revenue of 1.3 trillion yuan, down 16.9% year-on-year.
The pressure on both ends is an important reason for the sadness of steel mills. “Since 2015, although the price of iron ore has dropped from more than 130 US dollars in 2014 to the current US$50, but after April, the price of minerals has rebounded and steel prices are still falling.†The management of a state-owned steel mill told reporters. The lack of downstream demand and overcapacity will make steel prices impossible to raise.
According to the reporter, real estate and construction industry are the main areas of steel consumption. Since 2015, the new development area of ​​real estate has fallen sharply, which means that the consumption of steel will not increase significantly. In addition to the upstream and downstream extrusion, steel mills, especially private steel mills, are also facing pressure from all aspects of environmental protection and financing.
"For private enterprises, subject to a series of requirements such as capital, environmental protection, research and development, market, brand, etc., the ability to resist risks is significantly weaker than that of state-owned enterprises. Any problem in one ring may be eliminated." Dong Caiping, executive vice president of the Chamber of Commerce and chairman of the board of directors of the private steel enterprise Zhongtian Iron and Steel Group, told the reporter of the “First Financial Daily†that the entire steel industry is facing the requirements of transformation and upgrading. How to give full play to its advantages and highlight the encirclement A serious problem before the enterprise.
For Zhongtian Iron & Steel, how to reduce the cost of the sales link and directly target the end customer is one of the goals of the transformation. As early as 2011, Zhongtian Iron and Steel began to look for a steel e-commerce platform for docking. The steel mesh that started in the year was one of the partners. Through the combination of trading, joint ventures, self-operation, etc., Zhongtian Steel currently trades over 1 million tons on the steel platform, and all of them are retailed to small micro-purchasers, covering thousands of customers. This is the traditional wholesale of steel mills. It’s hard to do things.
Dong Caiping pointed out that the traditional offline trading mode is from steel mills to agents, middlemen, service providers, and finally to steel companies. The circulation chain is too complicated. The inventory turnover days are as high as 30 days to 45 days, and the capital occupation time is up to 40. In the days of ~60 days, the efficiency is very low. After using the steel e-commerce platform, the traditional model of the steel business in the "farmer market" is upgraded to the purchase of steel in the "supermarket" with the price tag, which not only reduces manpower and material resources. To reduce marketing costs, in the future, it is also possible to drive production through downstream consumption, and to set production according to different needs.
The “barbaric†growth of steel e-commerce
In fact, it is not just Zhongtian Iron and Steel that recognizes the problem of circulation. Wang Yingsheng pointed out that since 2011, the proportion of sales through steel e-commerce has gradually increased, and has reached nearly 10%. Steel mills are also increasing the proportion of direct sales. However, by 2014, 65% of steel products passed. Non-direct sales, that is to say, more than 600 million tons of steel is still sold through circulation.
At the same time, the number of steel traders has also dropped significantly. According to the reporter's understanding, after the outbreak of the steel trade crisis, the number of steel traders with more than 200,000 has now fallen below 100,000, while the steel e-commerce platform has grown from three years ago to two or three hundred.
For example, in 2012, the steel stencil was officially launched. In 2014, the transaction volume reached 68.8 billion yuan, an increase of 374% over 2013. Wang Changhui, co-founder and chief operating officer of Steel Network, told reporters that the number of direct-operated steel mills on the platform has reached 77, and the number of active buyers has reached 40,000. The daily trading volume has reached 16 trillion, and still Rising at a rhythm of 500 tons. “In 2015, we set a target of 12 million tons for proprietary trading, 35 million tons for the matching transaction, and 130 billion yuan for the transaction. As of the first half of 2015, the target achievement rate exceeded 95%.â€
According to the reporter's understanding, the current search for steel mesh has obtained investment from investment institutions including IDG, Chinachem Capital, Sequoia Capital, etc., and plans to return to China in 2016. Domestic large-scale steel groups such as Baosteel and Valin Steel, as well as private steel companies such as Shagang, are also strengthening their e-commerce business.
“In the first quarter, the number of new users of domestic steel e-commerce websites was 20,700, and the number of trading users was 43,000. According to incomplete statistics, in the first quarter of 2015, the steel trading volume of the domestic steel e-commerce market reached 14.17 million tons, China Steel E-commerce has entered the early stage of qualitative change." Li Xinchuang, president of the Metallurgical Industry Planning and Research Institute, told reporters that it is expected that the third-party steel e-commerce platform will gradually occupy the mainstream of the industry in the future, and the platform's business innovation capability and resource integration capability will become its core competition. The key element of force.
Li Xinchuang further pointed out that China's steel e-commerce field is still relatively lacking in originality in business model innovation and technology application innovation, specifically in the attempt to replicate the model of other non-steel e-commerce platforms, and the homogeneity between steel e-commerce platforms. The phenomenon of competition has become more serious. In addition, the idea of ​​overall system optimization has not been popularized. "In the future, the positioning of the steel e-commerce platform will gradually shift from greed to professional operation. Among them, financial services and logistics services will become more specialized, and establish efficient and reliable system integration mechanisms with other platforms," ​​he said.
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