How to do steel building materials business

Doing business is an art, not a natural science. There is no uniform answer. It needs patient experience and learning, and its essence is embodied in the word "enlightenment".

Do steel building materials business:

The steel market continues to fluctuate and prices are falling all the way. Steel traders have experienced the ups and downs of steel prices. It is generally felt that the steel business is becoming more and more difficult now, especially after entering the new period of steel overcapacity, some traders want to quit the steel market, invest in other industries and open up new markets. This is the new trend of the current steel circulation format.

Faced with the continuous expansion of domestic steel production capacity and the increasingly prominent contradiction between supply and demand, some steel traders realize that the competition in the steel market will be more intense in the future and the business will be far less good than before. The era of "buying and selling steel to make big money" is over, so they decided to give up the steel trade, quit the steel market, invest in new industries and open up new markets. Some steel traders will shift their business focus to modern steel logistics, buy a piece of land, build factories, build docks, charter boats, buy machines and set up steel distribution and processing logistics centers; And some have been engaged in the real estate industry; Some started steel structure manufacturing.

1. Faced with the phenomenon of overcapacity and prominent contradiction between supply and demand in the domestic steel industry, traders lose confidence in the future steel market. This year, the domestic steel output will reach 330 million tons, and the new steel output will reach 60 million tons. Next year, the production capacity will rise to 490 million tons, far exceeding the demand in the domestic market. In this regard, some steel traders think that "steel rice" is getting worse and worse, so it is better to change careers as soon as possible.

Second, the steel trade team has been expanding in the early stage, and the competition among traders is becoming increasingly fierce. In recent years, due to the hot steel market, manufacturers and merchants have a large profit margin, which makes batches of capital flow into the steel circulation industry. There are more than 50,000 Fujian people engaged in steel trade in Shanghai alone, and there are hundreds of trading enterprises. Such a huge steel trade team has made some traders realize that the competition will be more intense in the future and consider looking for new business.

Third, squeezed by the direct sales of steel mills, the profit margin of traders has shrunk, and they no longer make big money as before. Now some large steel enterprises pay more and more attention to direct sales, constantly expand the proportion of direct supply, and establish long-term and stable strategic cooperation with downstream end users to benefit users. On the other hand, all kinds of harsh requirements are put forward for steel traders, and the profit space for traders is getting smaller and smaller. When steel prices fall, most traders operate at a loss.

Four, with the emergence of e-commerce trade, some traders feel that the traditional way of trade is no longer suitable, but their own culture is low and they are unable to do so. In the 1980s and 1990s, most of the steel traders were operators with low education and used to traditional trade. They don't know computers, can't surf the Internet, and even know nothing about electronic transactions. Besides, I am old, and the money I earned a few years ago is enough for my whole life. I don't want to risk the steel market any more.

The insiders believe that this is a good thing for the integration of the steel circulation industry. Some steel traders who did not adapt to the development of the times were eliminated in the integration, leaving a group of circulation enterprises with strong financial strength, advanced marketing concepts, rich practical experience and good quality of enterprise, which improved the concentration of trading enterprises and was conducive to the standardized, orderly and healthy development of the steel market. At the same time, it is also conducive to steel mills to improve the sales system, expand the proportion of direct supply, and establish long-term and stable strategic cooperation with end users. It is reported that steel products directly supplied by steel mills now account for 20.67% of the total, while those entering the circulation link through traders account for 6 1. 17%, and the proportion of directly supplied customers is too low. With the adjustment and integration of the circulation team, steel mills are urged to expand the proportion of direct supply.