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Home> Industry Information> Iron and steel companies are making efforts to enable e-commerce companies to make " old trees sprout "

Iron and steel companies are making efforts to enable e-commerce companies to make " old trees sprout "

March 14, 2019

As of July 2013, 89 companies reported e-commerce platform plans, and 17 of them were steel e-commerce providers, including steel mills, traders, trading centers, and e-commerce companies. In the era of meager steel companies, the blaze of “Double 11” has allowed more companies to define the e-commerce path for commodities. However, it is understood that the commodity e-commerce model is still in its infancy, and several issues such as quality inspection, capital security, and profitability models need to be solved urgently. Most companies are still working hard to spread volume, and it is still relatively long for real commodities to realize online transactions. Road needs to go.


Baosteel's e-commerce platform transaction broken 1 million tons Shanghai Steel Exchange Center was listed at the end of May last year. It was jointly invested by Baosteel and Baoshan District government, and Baosteel is holding 90%. It hopes to participate in the transformation of steel trade through Shanghai Steel Trading Center and explore new profitable space. . Ma Su, deputy general manager of Baosteel International and chairman of the Shanghai Steel Exchange Center, revealed that since the establishment of the Shanghai Steel Exchange Center, the half-year transaction volume has exceeded 1 million tons and the transaction volume has reached 4.5 billion yuan.

According to the reporter’s understanding, the Shanghai Steel Exchange Center is mainly engaged in steel spot electronic trading, supply chain financing, and information consulting services centered on the transaction price index, providing transactions, capital, logistics, processing, technology, information, etc. for upstream and downstream enterprises in the steel industry. Full-process, one-stop service, hoping to build a leading third-party service platform in China and even in the world.

Masu told reporters that since the establishment of the Shanghai Steel Exchange Center, the number of merchants has exceeded 26,000, with an increase of 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.

It is worth noting that, in addition to Baosteel, many companies in the steel upstream and downstream industry chain have begun to try to get involved in the steel e-commerce platform. The president of the China Storage and Transportation Association, Jiang Chaofeng, disclosed to reporters that as of July 2013, 89 companies reported e-commerce. In the planning of the platform, there are 17 steel and electricity suppliers, including steel mills, traders, exchanges, and e-commerce companies.

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.

The practice of “Alibaba” in the steel industry actually started back in the era when the Internet had just begun to boom in 2000. Baosteel had already tested water e-commerce. Dongfang Iron & Steel E-commerce Co., Ltd. was established at that time mainly for the added value of customer service, and now E-commerce has been identified by Baosteel as one of the key areas for future expansion. Among the “one-piece two wings” of Baosteel’s latest planned development, e-commerce based on the Shanghai steel trading market is one of the wings.

This transformation of the leading steel industry is not unrelated to the changes in the overall environment of the entire steel circulation industry. In the years when iron and steel enterprises enjoyed booming profits, most steel products were not sold directly from steel mills to end-users. Large and small middlemen played a big role. They not only helped the steel mills to make investments. It also controls the downstream customer channels. If customers are far away from the steel mill, they may need to go through multiple middlemen to get from the seller to the buyer.

At that time, there were already some companies in the industry who wished to introduce the “Alibaba” model to sell steel through the cooperation of steel mills, traders, and end-users. For example, Shanghai Steel Union, which started with steel information, had been in 2000. In 2003 and 2008, they tried steel and electricity suppliers three times, but they did not have much effect because of the inherent sales habits and interests in the industry.

After all, the price per ton of steel is 3,000 to 3,000 yuan, and an order is worth millions. If huge purchases are completed through a virtual network, it will still be subject to the traditional mode of thinking for the management of state-owned steel mills, who were mostly born in the 1950s and 1960s. The restrictions are not risky.

“Now steel prices are not going up and all kinds of costs are still rising. If steel mills want to keep losses, the first cut may be the circulation cost. In the past, the circulation cost could account for 20% of the steel price.” A medium-sized steel The factory’s sales staff revealed to reporters that the cost of selling one ton of steel by the steel traders was 15 yuan, but now they are sold through the e-commerce platform and they are still free. When the steel market is in the doldrums, it’s steel. The factory has a greater appeal.

Currently, no matter whether it is the Shanghai Steel Exchange Center of Baosteel Co., Ltd. or the steel and silver platform of Shanghai Steel Union, there are no fees for the transactions made by its steel mills, traders and end-user members through the platform. They also do not want to collect membership fees or transactions. The commission method is profitable, but it hopes to extend the industry chain on the premise of accumulating more members and transaction scale, and profit by providing more value-added services, such as price information, financing services, logistics and warehousing services for both members and transaction parties. Wait.

The iron and steel industry has made great contributions to e-commerce. In fact, the potential of the telecom steel e-commerce industry in Fitch China is not limited to Baosteel and Shanghai Steel Union. The president of the China Storage and Transportation Association, Jiang Chaofeng, disclosed to this reporter that as of July 2013, there were 89 Companies reported e-commerce platform planning, and 17 of them are steel and electricity suppliers, including steel mills, traders, trading centers, and e-commerce companies.

According to the reporter’s understanding, there are not only 17 companies that have already poured into the field of steel e-commerce. They include not only listed companies such as Minmetals Development and China Resources Bank, but also large-scale steel distribution companies such as Zhejiang products, but such as Baosteel’s Shanghai Steel Union does not have as much public platform trading volume as this, and there are only a few online transactions.

“Almost half of the current trading volume of Shanghai Steel Exchange Center is supported by Baosteel’s own products. Shanghai Steel Union has for many years left a lot of trust and customer base among steel mills and traders. These may be other. The entrants do not have.” An industry source pointed out that “current profits and losses may not be important, but when more and more competitors begin to flock, we must know where the losses are, and whether their own profit model is healthy. ."

“The iron and steel industry in China has always been relatively extensive in mitigation management and control of trade and warehousing. The lack of integrity in the steel circulation sector that has been escalated from the fourth quarter of 2012 has caused the industry’s public confidence crisis to remain unresolved. In 2013, the mode of steel circulation in China has been occurring. Transformation: from the original mid-to-long-term order to the main spot-to-spot conversion, from the original land-style transactions to supermarket-based transactions, from the past site to see the goods turned into network selection,” said the chairman of the China Iron and Steel Circulation Industry, Research and Innovation Alliance. Yao Linlong, general manager of Baosteel International, told reporters that “a new model of steel circulation is taking shape, and e-commerce will become a booster for the transformation and development of steel circulation. This is also the basis for Baosteel’s development of industrialization of steel and electricity suppliers. It relies on the Shanghai Steel Exchange Center and With two platforms for innovation alliances, we hope to play a leading role in modeling and benchmarking for the transformation breakthrough in China's steel circulation.”

Can e-commerce complete the "redemption" of profits in the steel industry?

Chen Qiang, an analyst at China Iron and Steel Industry Network, stated that “E-commerce as an important part of information technology is a requirement for steel companies to adapt to future market competition, and can help steel companies achieve integration in production, supply and sales, and strengthen their convergence and cooperation with upstream and downstream industries. For the steel industry, the development of e-commerce can effectively reduce the transaction costs of companies and increase sales opportunities, but the e-commerce trading platform for steel is difficult to succeed without a certain amount of transaction.

Chen Qiang said, “For steel companies to develop e-commerce companies seeking new profit growth points, they must learn to change their roles and effectively keep up with the development needs of the steel e-commerce trading platform. At the same time, they must have sufficient psychological and other preparations for the cost of change.”

Chen Qiang also gave his own suggestions on the development trend of his ideal iron and steel electricity supplier. In his view, the steel industry has long been a one-on-one, traditional transaction model, and the amount of funds is relatively large. The capital operation efficiency in this respect is not particularly strong. Therefore, iron and steel e-commerce should be dominated by small-species exchanges and small-species trading platforms. "Such as small steel exchanges, scrap steel, steel billets, trading instruments, trading platforms, these should be more room for development." Chen Qiang further added.

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.”

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