Analysis of the hottest steel trade industry three

2022-08-19
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Big analysis of the steel trade industry: three transformation trends of steel traders

in view of the new trend of the development and transformation of steel trade enterprises, we conducted a thorough investigation on 30 Enterprises above the vice president level of a steel chamber of Commerce in Shanghai who built China's largest energy-saving electronic aluminum foil production line with high starting points and high standards. The transformation of steel trade enterprises is nothing more than focusing on the main business of steel trade and the new trend of the development and transformation of steel trade enterprises. We conducted a thorough investigation on 30 Enterprises above the level of vice president of a steel chamber of Commerce in Shanghai. The transformation of steel trade enterprises is nothing more than the extension of upstream and downstream industrial chains around the main business of steel trade, cross-border development, and the use of steel trade as a financing platform for capital operation. According to incomplete statistics, these 30 enterprises account for 100% of the first category, 50-70% of the second category and 100% of the third category. However, it is worth noting that the number of enterprises that completely abandon the steel trade business is 0

if the development framework of an enterprise is compared to a pyramid, the bottom level should be the main products of the enterprise (the main industry of steel trade), the middle is how to make these products into an industry (industrial chain extension), and the top level is to use financial tools to allocate and reallocate resources (capital operation). At present, the transformation phenomenon in the industry is the inevitable choice for the development and upgrading of industry enterprises

industrial chain extension

some steel trading enterprises have jumped out of the traditional one buy one sell trade mode, and gradually extended to the upper and lower ends of the industrial chain with the steel trading business as the center. As the intensity of measures to eliminate backward steel production capacity has increased this year, some steel trading enterprises have begun to control some steel mills or invest in new small short process steel rolling enterprises. However, in terms of proportion, the investment proportion of steel trading enterprises in steel mills is small. Some steel enterprises, pan Gongsheng, vice president of the people's Bank of China, have made use of their capital advantages to substantially control the upstream iron ore resources. More than 10% of the enterprises above the vice president level of the steel trade chamber of Shanghai Federation of industry and Commerce have their own mines

in addition, steel trading enterprises are also actively developing maritime business. It is also a key direction to extend the industrial chain upstream through self shipbuilding or holding maritime enterprises, communication companies, cargo transportation and storage ports, etc. In terms of downstream extension, enterprises above the vice president level of a chamber of commerce almost 100% extend to the downstream terminals of the industry to provide diversification. Personalized services and businesses that steel mills cannot or do not want to do are mainly reflected in the shear processing and distribution. According to the survey, there are more than 100 private shear processing centers or plate factories in Shanghai, most of which are integrated with processing, warehousing and trade

cross border development

in recent years, with the relative reduction of profit points and profit margins in the steel trade industry, some steel trade enterprises have no hesitation to choose secondary entrepreneurship and explore new fields and projects one after another. After the completion of early accumulation, diversification has become a common phenomenon in the steel trade industry. At present, the main directions of the diversification of these steel trading enterprises are the real estate industry, catering and entertainment industry, manufacturing industry, etc., of which about 50% to 60% are involved in real estate. The profit seeking nature of steel trade capital is undoubtedly revealed

from the perspective of industrial integration, the development trajectory of these steel trade enterprises is generally to professionalize around the main industry of steel trade first, and to a certain extent, complete the original accumulation. After having enough capital and experience in operating the industry, they will face many choices and start to take the road of diversification. For example, in 2007, Shanghai shunye iron and Steel Group joined hands with Fuxing Group to jointly build the real estate project of Shanghai Iron and Steel Service Center (steel collar), and Shanghai Baoquan Industrial Group Co., Ltd. invested in Shanghai Baoquan iron printing can Co., Ltd. However, almost all research enterprises have not completely abandoned the business of steel trade

capital operation

after a thorough investigation of more than 30 companies above the level of vice president of the steel trade chamber of Commerce of Shanghai Federation of industry and commerce, it is found that almost 100% of enterprises are involved in the connection and linkage operation between the capital strengthening announcement list and finance, environmental protection, energy and other aspects, in a variety of forms, involving participation in financial institutions, the establishment of guarantee companies, the establishment of futures companies, and even shares in listed companies, Equity investment (PE) is almost the most high-end way. In recent years, the financial attribute of steel products has become increasingly prominent, and the rules of the market have changed greatly. Steel trading enterprises were forced to break the traditional operation ideas and gradually began to participate in direct financial operations, mainly in the operation of steel futures and electronic discs. Based on the characteristics of the industry, steel trading enterprises have established guarantee companies and pawnshops, and used various financial means such as joint guarantee financing, trust funds, warehouse receipt pledge to expand their business is also quite common. Almost all the successful guarantee companies in Shanghai come from the field of steel trade

according to incomplete statistics, at present, there are more than 100 guarantee companies in Shanghai, but only dozens of them are really operating well, most of which are concentrated in the field of steel trade. By the end of 2009, there were about 20 professional steel trade financing guarantee institutions in Shanghai, with guarantee funds of more than 2 billion yuan. In addition to the automobile industry, the transformation of the guarantee industry has unique advantages: first, the products of the industry are easy to pledge and realize quickly; Secondly, some large steel trading enterprises are often operators of the steel market. They generally rely on many high-quality customer groups in the steel market and the advantages of spot trading, warehousing, logistics and supervision system

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