Steel Enterprises Solve the Difficult Path: Iron and Steel E-Commerce Becomes Tide in 2013

The rapid development of China's e-commerce has deeply affected every industry. Relevant data show that at present, there are more than 30 iron and steel e-commerce companies in China, and these emerging forces will change the development environment of the steel industry from aspects of transaction mode, logistics and finance. With a click of the mouse, you can buy steel online. Iron and steel e-commerce has become a trend in the past 2013.

The issue of excess capacity in the steel industry in China has not been resolved. And the price of steel is falling again and again. In this context, the search for new development models has become the top priority for steel companies. In the past 2013, many steel companies began to try hydropower companies and tried to reduce costs and ease the difficulties through the e-commerce platform.

China’s e-commerce transaction volume in 2014 exceeded 10 trillion yuan and entered an important critical point. As an important means of production, steel is one of the fastest-growing industries in b2b e-commerce. The current iron and steel e-commerce, the typical steel companies such as Baosteel's Shanghai Steel Exchange Center, Internet companies such as the Shanghai Iron and Steel Office of the steel e-commerce, intermediary dealers such as the Office of the Essex Shinkans e-commerce platform. Through the free trading of steel mills, traders and users on the Internet transactions, the rapid expansion of passenger flow, and then provide a variety of value-added services.

The industry's difficulties "forced" more than 30 steel and electricity suppliers as bulk supplies, and the amount of steel trades was still on the order of more than one million yuan. From a traditional perspective, it is difficult to see E-commercialization. However, why steel e-commerce has been surging in 2013? An important reason is the industry's dilemma. Director of the Steel Logistics Committee of the China Federation of Logistics and Purchasing and the CEO of the Xi Bin Shinkansen, Gang Gang, pointed out that the maximum volatility of domestic steel prices reached 2,550 yuan/ton in 2008, 960 yuan/ton in 2010 and 690 yuan in 2013. /Ton. As the volatility of steel prices continues to narrow, the profit model for traders to earn spreads is gone forever. The traditional multi-level sales system of the steel industry has rapidly collapsed, and services, platforms, and online and offline integration have become new choices.

Zhou Guoquan, vice president of Zhongtian Iron and Steel Group, has personal experience. At the peak of the market, one ton of steel can earn a thousand dollars, while the current low profit of tens of yuan per ton of steel is the norm. In this case, it is an inevitable trend to reduce sales levels and reduce circulation costs, and this is exactly what e-commerce companies are long on. Since Shanghai Steel Trading Center initiated by Baosteel was established six months ago, the transaction volume has exceeded one million tons. The average daily transaction volume of the steel search network that went online in 2012 was said to have reached 50,000 tons, and the valuation of the company was about 200 million US dollars.

As in other fields, most steel and electricity suppliers currently take the free mode. Through the free trading of steel mills, traders and users on the Internet transactions, the rapid expansion of passenger flow, and then provide a variety of value-added services. A steel and electricity supplier remarked that under the support of venture capital, it had already prepared for a loss of 3 to 5 years. In this regard, Dong Baoqing believes that while the scale of users is important, steel and electricity suppliers must be well-managed to provide professional services in logistics and finance.

The road to future salvation of the steel industry It is understood that the Shanghai Steel Exchange Center is mainly engaged in steel spot electronic trading, supply chain financing, information consulting services centered on transaction price index, etc., providing trading, capital, logistics, and processing for upstream and downstream enterprises in the steel industry. , technology, information and other full-process, one-stop services, and hope to build a domestic and even global leading third-party service platform. Since the establishment of the Shanghai Steel Exchange Center, the number of merchants has exceeded 26,000 and increased by more than 300 per month. This year's transaction volume is expected to exceed 3 million tons, and the transaction volume will exceed 10 billion yuan.

In order to accelerate the expansion in the field of steel e-commerce, Baosteel has also established a China Iron and Steel Circulation Industry, Research and Innovation Alliance with a number of steel circulation companies, research institutes, universities, industry associations, experts and scholars to explore service innovation in the field of steel circulation. Model innovation.

For the future development trend of e-commerce in the steel industry, industry analysts also gave their own opinions and suggestions. “In the face of the severe survival situation of the steel industry, steel companies can only manage to innovate in the wave of informatization by innovating and integrating external information and resources, and creating the competitive advantages of the company and the entire steel industry.” An industry analyst said, “So, It is imperative to develop e-commerce innovation and build a collaborative e-business of the steel industry, and it will become the development trend and driving force of steel e-commerce in the coming period.”

Editor's summary: The traditional multi-level sales system of the steel industry has rapidly collapsed. Services and platforms have been established, and the integration of online and offline development has become a new choice. The e-commerce platform is providing enterprises with such a platform. Since most of the platforms are free-to-mode, the cost of enterprises is greatly reduced. Therefore, more and more companies are paying more attention to the e-commerce platform. As an important part of informatization, e-commerce is the need for iron and steel companies to adapt to future market competition. The future market development can be expected.

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