How should steel trading companies develop? Please answer with domain experts.

With the continuous improvement of steel output and the huge fluctuation of steel price (407 1, 28.00, 0.69%), the competition in the steel industry is further intensified, and expanding the third profit source and developing modern logistics of steel have become the hot spots in the steel industry. In the fierce market competition, it is a problem for steel trade circulation enterprises to develop modern steel logistics and realize the evolution from trade to processing, so as to consolidate and expand market share.

With the rapid development of social economy, the demand level of steel is constantly improving, and the steel trade is also constantly upgrading. The profits of steel trading enterprises simply by buying and selling steel products are getting lower and lower, and the development space is getting smaller and smaller. "The transformation from trade to service is the development direction of steel trade circulation enterprises." The relevant person in charge of China Metal Materials Circulation Association believes that developing modern steel logistics, establishing processing and distribution centers, highlighting personalized and professional services and extending the industrial chain are one of the ways for dealers to survive and develop.

Improve the ability to resist risks

Steel processing and distribution are connected with steel mill resources and end users. Through the independent technology and brand of the enterprise, the upstream and downstream resources are integrated to forge a very close chain for the industry, and at the same time, it is deeply embedded in this chain and becomes an inseparable body of upstream and downstream.

-Li Yaoqiang, president of China Metal Materials Circulation Association, said this.

"Modern circulation methods such as steel processing and distribution are getting more and more attention in the steel circulation industry. At present, the income of some steel dealers accounts for more than 20% of their total income. "

Steel processing and distribution has become a new logistics model. As a way for steel distribution enterprises to form a supply chain with downstream users and optimize steel logistics, steel distribution center is formed and developed with the continuous enrichment of steel resources in the market and the continuous improvement of steel users' requirements for steel supply in terms of content, time and service level. The establishment and development of steel distribution center can meet the needs of steel users, steel enterprises and steel traders, and become an important means for Chinese steel enterprises to extend product sales to users, establish stable supply channels and form supply chains.

In this regard, in the face of the new market situation, dealers should improve the added value of steel products by developing processing and distribution centers to meet the needs of end users. "Distribution centers should be as close to customers as possible, provide extended value-added services, and carefully study the positioning of distribution centers and the individualized needs of the market to effectively connect users."

"Steel processing and distribution has effectively improved the anti-risk ability of steel trading enterprises, and steel processing and distribution has met the deeper, finer and higher-level needs of users." Carrying out steel processing and distribution and improving the steel circulation format are the requirements for the circulation industry to cultivate its core competitiveness, and are also the key for the circulation industry to remain invincible in the fierce market competition.

Find the right market position

"China's steel processing and distribution enterprises have many investors and overcapacity in some areas. Therefore, new processing and distribution enterprises must find their own market positioning when investing in construction, enhance their core competitiveness, and avoid blindly following the trend, resulting in unnecessary waste and investment mistakes. "

-senior experts in the steel circulation industry said.

At present, China's steel processing and distribution is in the stage of coexistence and development of steel mills, foreign capital, steel trading enterprises and end users. In recent years, the rapid formation of processing and distribution capacity has made some regional markets have excess processing and distribution capacity and fierce market competition.

"Due to the large number of investors in China's steel processing and distribution enterprises, there is no unified planning, and overcapacity has occurred in some areas. In this regard, new processing and distribution enterprises must clearly define their market positioning when investing in construction to avoid unnecessary waste and investment mistakes. "

Compared with developed countries, the proportion of steel deep processing in China is low, and in these steel processing and distribution centers that have been invested, most of the equipment functions are similar, the products are single, and the processing accuracy is low, only staying at the simple rough machining level, and some are limited to self-operated product shearing. At the same time, steel processing and distribution enterprises are small in scale and unevenly distributed. "Most of the processing and distribution centers now have no difference and no characteristics. The equipment utilization rate is low, the investment recovery is slow and inefficient, and the added value to steel itself has not been improved. The new processing and distribution center should make a fuss about improving functions, improving services and improving equipment utilization. "

The insiders suggest that to establish a steel processing and distribution center, it is necessary to do a good job in market research, clarify the processing capacity, radiation capacity and the actual needs of customers, and coordinate the functional allocation of the center on this basis to improve the operational efficiency of the center.

Highlight personal needs

Steel processing and distribution center, as an organizational mode of forming a supply chain between steel trading enterprises and downstream users, can not operate without users' needs, and the logistics, information flow and capital flow of steel supply chain can only be generated under the pull of users' needs. Whether the relationship between processing and distribution center and users is coordinated is the key to its success. Therefore, the planning, establishment, operation and development of processing and distribution centers should focus on users.

-people in steel circulation enterprises say so.

The steel products that end users need are complex, not just a steel mill or a certain variety of steel products, but multi-variety and multi-level demand. But at present, no processing and distribution enterprise can meet all the needs of a user, and it is often that "an end user has to contact several processing and distribution enterprises at the same time", which brings great inconvenience to them.

When establishing a processing and distribution center, steel dealers should take meeting customers' individual needs as the starting point, and carry out all-round processing and distribution business as the development direction, so as to realize differentiated competition in distribution and win-win with customers.

In the future development stage, we will give full play to the advantages of e-commerce and complete the online electronic trading of steel and its raw materials, and then realize the modern steel circulation mode of "electronic trading-shearing processing-rapid distribution" through steel processing and distribution centers all over the country.