Conception of spot electronic trading market for steel products

Before 2 1 century, the traditional trade mode was mainly traditional trade. The traditional trade model is that buyers and sellers meet directly, reach an agreement on the sale of goods, and then make a deal, with one hand paying and one hand delivering. In traditional trade, bulk commodity transactions are mostly conducted by contract, and buyers and sellers will conduct commodity transactions according to the contents of the signed contract in the future. It has the following disadvantages:

(1) The price formation is irregular and the risk cannot be transferred. Since the signing of the contract price is determined according to the factors such as supply and demand at that time, in the process of contract execution, the change of market price is inevitable, which is beneficial to one party and unfavorable to the other. At the same time, the formation of prices is also largely restricted by regions, and it is difficult to form a fair price.

(2) Credit risk. The inevitability of price risk affects the effectiveness of contract execution, in which case credit risk is inevitable.

(3) There are few buyers and sellers, so it is difficult to form a centralized market. Buyers and sellers negotiate and bargain separately to reach an agreement, and their negotiation skills and skills have a great influence on the formation of prices.

(4) The degree of contract specification is low. Every time a contract is signed, there are a series of links, such as finding customers, making inquiries, preliminary negotiations, signing contracts, etc. It must be repeated that factors such as variety quality, time and transportation must be debated endlessly. For bulk merchants, such signing and execution is very complicated, and the transaction cost increases accordingly.

With the appearance of the Internet, the world has gradually become a global village, and the spot electronic trading of steel products based on informationization has stepped onto the stage of new economy. Spot electronic trading of steel (also known as electronic trading of bulk commodities, or trading of steel spot warehouse receipts) is a trading mode in which spot warehouse receipts are the subject matter of trading, centralized bidding transactions are conducted through computer networks, unified matching transactions are conducted, unified settlement payments are made, and real-time price quotations are displayed. Its essence is the e-commerce of steel spot goods. The Standard for Electronic Trading of Bulk Commodities clearly defines bulk commodities: material commodities that can enter the circulation field, but are not retail links, have commodity attributes and are used for industrial and agricultural production and consumption.

Spot warehouse receipt is a kind of certificate representing the ownership of goods issued by the market to the owner after the goods are delivered to the designated warehouse. After the spot warehouse receipt is registered in the trading market, it can enter the trading system of the spot trading market through the Internet for trading. Spot warehouse receipts can be freely transferred, traded or delivered in kind in the market. Spot trading is actually a standardized warehouse receipt transaction.

Spot trading is based on the network as a tool and e-commerce mode. Buyers and sellers don't meet, the electronic trading market is the trading platform, and the national government is the referee. It is a win-win model combining online and offline, reality and virtual, traditional economy and network economy, which fully solves many problems in spot commodity trading, such as living source, customer source, online settlement, logistics and distribution.