Original title: Strive for direct sales Three-quarters of dealers will be eliminated
Our reporter Liu Xiang reports from Beijing
“Once it was difficult to do business, if processing and distribution made steel companies do it themselves, wouldn't it make people live?†Yang Xing (a pseudonym), a steel distributor in Wuhan, complained to the China Times reporter.
He operates and sells steel products such as construction steel and cold and hot rolled coils. Because the market is sluggish, some products have suffered losses, and they are struggling to back up because they are unwilling to give up their steel business for more than a decade.
It is understood that the processing and distribution center invested and constructed by the steel enterprises has now been shown to be in danger. Yang Xing's depression is not worrying.
Force direct sales
On July 4th, the reporter learned from Wuhan Iron and Steel Group that the Nobel laser welding and WISCO (Wuhan) distribution center built by WISCO and Nobel Steel Co., Ltd. was started construction on the 28th of last month in Wuhan Economic Development Zone. After the Chongqing and Tianjin distribution centers were completed and put into production, the third processing and distribution center project invested by Wuhan Iron and Steel was built.
On June 26th, Taiyuan Iron and Steel Group, the largest stainless steel manufacturer in the world, announced that the Taishan Foshan Stainless Steel Processing and Distribution Center, which covers an area of ​​60 mu, invested 300 million yuan and has an annual processing capacity of 200,000 tons, was officially laid off. Completed.
On the previous 21st, the total investment was nearly 30 billion yuan. After completion, the annual throughput will exceed 70 million tons. The sales revenue will be 62 billion yuan. The Shagang Group with a total profit and tax of 6.5 billion yuan will be successfully contracted for the metallurgical logistics processing and distribution project in Lugang. The entire project plan will be signed. Built in 2010.
“In the week, three domestic steel companies have signed or started work, which is very rare.†Yang Xing said, “More steel companies will build or participate in processing and distribution centers in the future, and the space for our dealers to survive will increase. The more narrow it is."
The information learned by the Huaxia Times reporter is that not only Baosteel, Anshan Iron and Steel, Wuhan Iron and Steel and Maanshan Iron and Steel and other large iron and steel enterprises are constructing various types of steel processing and distribution centers, but some second-tier steel companies such as Shagang and Handan Iron and Steel are also planning to build processing and distribution centers. Many traders and warehousing companies also have involved in processing and distribution.
According to relevant data, there are currently more than 300 steel processing and distribution centers in China, and this number is still increasing.
Deng Qilin, general manager of Wuhan Iron and Steel Group, said that Wuhan Iron and Steel will invest in the construction of five distribution centers throughout the country, "the other two centers are being located."
According to Deng Qilin, WISCO built a processing and distribution center nationwide “to better occupy and exploit the market†because “the marketing strategy for steel production and steel trade has undergone a fundamental changeâ€, but he did not expressly.
Industry reshuffle
"However, the steel companies' self-built processing and distribution centers will certainly have a huge impact on dealers. Many dealers will be squeezed out of the steel market." Yang Xing worried. A Shanghai-based distributor, who declined to be named, told reporters that in the Shanghai steel market, which accounts for about one-sixth of the country's total transaction volume, some dealers have already closed down and switched.
Steel dealers and Zheng Zihuan, general manager of Shanghai Spring Dye Industry Development Co., Ltd., also believe that self-built processing and distribution centers of steel companies will have more or less influence on distributors.
"But from the current point of view, the impact is still not obvious." Zheng Zihuan analyzes that this is because the processing and distribution centers of self-built steel enterprises in China currently face major companies like FAW, Dongfeng, and Haier, and these large companies are not As a result, customers of ordinary distributors have not caused too much influence on small and medium-sized distributors. However, as other domestic steel companies continue to increase direct sales, the market that belongs to dealers will shrink, which is bound to cause some dealers to be eliminated because they have no products to do.
According to the above-mentioned dealers who are unwilling to be named, “3/4 of domestic dealers will be eliminated, and customer resources will be further concentrated on large and well-served dealers, just as steel production capacity will be further concentrated in large groups. ".
Li Zuojun, researcher of the Ministry of Industry and Economic Research of the Development Research Center of the State Council, said in an interview with the newspaper that the processing and distribution center can replace some of the intermediate functions of the steel market and suppress the speculative behavior of distributors, thus stabilizing the market price of steel products, and improving overall competitiveness. And market control.
“Because the current level of steel dealers in China is not homogeneous and the market is not operating efficiently, resulting in high transaction costs. After balancing the gains and losses, steel companies feel that self-built processing and distribution centers are more cost-effective, but they can also extend the industry chain and gain more. Profits, why not? Moreover, they have a strong capital itself." Li Zuojun said.
“In addition, it can also reduce corporate risks.†Li Zuojun said that self-built steel processing and distribution centers will be the future trend.
The investment quota for processing and distribution centers that have been built or under construction for large steel companies in the near future
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