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Stainless steel tube stock is a drumming game: steel trading business into reservoir

Jiangsu Sheye Metal Co.,Ltd | Updated: Sep 02, 2016
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From Tangshan fengrun in Handan, Hebei province, Wu, then to caofeidian, steel mills, big and small, stacked with a variety of steel products. Just a few years, China's steel production capacity increased from 100 million tons to 1 billion tons, practice output to climb to 700 million to 800 million tons. With the release of steel capacity, steel inventory has been added, the organisation since 2005 statistics since steel stocks, steel monthly ending inventory amount has been increased from 4 million-5 million tons per month to about 12 million tons per month this year.

Steel stocks is like a cut drum take game from mean weak demand, then stainless steel trading business unable to withdrawal of disk access, today, at last, come to the consumers hands, next, who can then pass on?

Dry "reservoir"

Xu xiangchun, effect on steel stainless steel trading business image as "reservoir".

"Stainless steel tube effect on the steel trading business in the supply chain is like a reservoir, many of the stainless steel and steel mills are annual agreements, each month pickup from the steel mill, upstream Mills advance acquisition, flow advance purchase funds. Since last year, but stainless steel trading business to run and continue to profit, was slashed by stainless steel trading business. "Xu xiangchun said.

Stainless steel trading business about how much is gone, it's hard to be clear, in August this year, regional court of Shanghai steel trade and financial disputes over more than 300. Bulletin of the large steel trading in Shanghai, on October 1 through veteran, upscale Analysis Division Song Yechun said, "Shanghai is about one-third stainless steel trading business to run. ”

In practice, more stainless steel trading business to see professional profit is difficult to change, has been an early withdrawal. Shanghai Hua Lei, General Manager of corporate development told reporters Liang Taigeng pointed out that today's steel trading career a year after year, stainless steel trading business to buy voluntary very depressed. But people in the analysis shows that existing stainless steel trading business to adopt the "low inventory" strategy, funds used to reduce stress.

"The function of the reservoir is now greatly weakened, steel mill, not just shipping ways became cramped, also means advance payment cuts, cash flow problems; in addition to strengthening the selling, promotion expenses to be added. "Xu xiangchun cut stainless steel trading business impact yanbiyouzhong that sold to steel mills.


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