Main Products


Contact Us

  • Contact: Alice
  • Tel : +86-318-7533332
  • Skype: boyangmesh
  • E-mail:
  • More Contact >>


Your current location :Home > News > Steel trade adversity Survival

Steel trade adversity Survival

change the spot buying and selling, and actively use futures, some continue to adhere to the steel trading business.
2012 years, there were a ton of steel mills sigh profit less than one kilogram of pork coming era. However, after a year, a profit even only 0.43 yuan per ton, two tons together enough money to buy a Popsicle.
with the decline in steel prices, the domestic steel industry, the situation worsened in recent years, had a hard steel, steel trading business in the middle part of the natural difficulties of heavy, embattled.
"steel trading business exits are staged every day before our floor full of steel trade company, is now only one or two families of each." Steel Pipe Co., Ltd. and Shanghai Metallurgical Trade Futures Daily general manager Baoxi Kui told reporters.
It is understood that in 2011 domestic steel prices fell, steel agreement households serious losses. Last years steel agreement households decreased a lot, do not cancel the agreement, the agreement also mostly reduced the amount. While last years steel mills in order Fair, launched a more preferential policies than in previous years, such as the annual margin down standards for completioSteel trade adversity Survival,n of the agreement to improve the amount of subsidies and other traders, but did not make adjustments to the pricing mechanism. "Steel is still higher than the monthly pricing market price, since the annual deposit in the hands of steel mills, traders are forced to accept much higher than the market price of steel resources. Event of extreme market fell sharply, traders will face a huge loss. "Baoxi Kui said.
change cash sales model

currently has almost no profit mills, steel trading business and rely on for survival? "me many steel trading business career change from last year to now, the switch should have 15% -35%." Nanning Wu told reporters steel trading business.
stick, or exit? which is placed in front of the steel trading business reality. Change the face of the steel market, still adhere to the steel trading business are constantly changing sales model, in order to adapt to market changes. Stockpile once the steel trading business of "compulsory exercise", has also been an important factor affecting steel prices, but now almost no steel trading business again stockpile it. Many people have said the steel trade, the current stockpile is the biggest risk facing the steel trading business.
"How many orders are now into the number of goods, who did not dare to hoard goods." Mr. Ban steel industry sources said, because more and more difficult to predict steel prices, increasing financial pressure, steel trading business to be able to accelerate turnaround, reduce financial pressure, are afraid to stay in the hands of the goods. Www steel analyst Li Zhi said the change this way of selling is nationwide, from the end of last year has already begun, is a sharp decline in the performance of their important social stock.
"market downturn in the steel market, steel trading business to learn smart, should contract sales, earning only appropriate spreads, one steel trading business strategy which is also part of the stick." Mr. Pan introduced After adjustment strategy into the ship, most of the steel trade demand orders, sales strategies and more flexible. For example, more steel trading business in order to reduce costs, to start shipping directly from steel mills. Supplying the site of the steel trading business, are based on direct orders from the goods sent to the mill site, usually lasted only a few dozen tons of inventory, not only can reduce the risk, but also reduces storage and logistics links, can greatly reduce the cost .
rely on a combination of existing development

addition to changing the way before the purchase and sale of stock, the active use of the futures market is also important reasons can stick to steel trading business. From correspondents understanding of the situation, be able to carry on the majority of steel trading business with a combination of existing models. In fact, some savvy
steel trading business in 2008 after the financial crisis began to realize that the risk of steel trade industry. It is from that time onwards, Baoxi Kui start thinking about how "transformation." "When I came out from the state-owned enterprises, I opened a small company, but later found the price too transparent, the company unsustainable." 2009 rebar futures market, Baoxi Kui wait for some time, found the spot prices follow futures price volatility, spot market while profit fell badly, he put on the spot futures as well as additional hedging tool.
However, many steel trade futures beginning is not very familiar with blind speculative operations, resulting in a loss, and thus the futures shunned, prejudice. 2012 is a steel trade circles recognized market worst year, steel futures trading business to do more and more, but no one can insist on doing some hedging. "Im one persevered, steel trade enterprises to use futures to hedge do not put speculative futures as a tool." Baoxi Kui said, there are some steel trading business to see individual steel trade futures speculation losses do, or do not understand hedging meaning, resolutely resist futures, hedging boycott, which suffered serious losses and exit the steel trade circles on the spot.
Baoxi Kui be doing a better combination of an existing steel trading business. He believes that the steel trade in the futures hedging should mainly speculative, giving cautious speculation, rational use of futures instruments to avoid speculative hedge made to eliminate extreme speculation. In the steel market downturn, Baoxi Kui recommend ordering the right amount of steel trade and steel resources can then pick the spot instead by way of sales from futures, the simple strategy of operating cash before the change. Although the above business strategy in the stock market next year, traders profit is not much, but compared to those losses was unable to stick to them in the steel trade is concerned, is considered good.