Transformation of survival mode of seamless steel pipe trade structure pipe, fluid conveying pipe, l

Source:XHD Metals    Time:23 March 2021

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With the adjustment of the national macroeconomic policy, the profit of my country's seamless steel pipe trading industry fell by 56.9% from January to May this year. Large and medium-sized seamless steel pipe companies had a net loss of 1.984 billion yuan in July, and the entire industry faced losses in August. Many problems in the traditional seamless steel pipe trade market are gradually exposed: due to the lack of fine processing industries for structural pipes, fluid conveying pipes, and low and medium pressure boiler pipes, China’s structural pipes, fluid conveying pipes, low and medium pressure boiler pipe manufacturers and structural pipes There is a serious information mismatch among enterprises that demand fluid pipes, fluid pipes, and low- and medium-pressure boiler pipes. Huge intermediate profits are snatched away by companies in the United States, Japan, South Korea and other countries such as structural pipes, fluid pipes, and low- and medium-pressure boiler pipes. Steel pipe companies only rely on rough processing to earn meager profits; China’s traditional steel transactions adopt a simple “buy one sell” model, which makes it difficult for the supply and demand market to effectively connect. Companies often need to spend a lot of material and manpower to find effective customers; In terms of the logistics of conveying fluid pipes and low and medium pressure boiler pipes, the traditional warehousing, distribution, and transportation processes, due to the backward management methods, also have problems such as inability to effectively monitor the transportation process, low customer satisfaction, and high logistics costs.

Change in business model: extend upstream and use fine processing to increase the added value of products

"The key difference is that China lacks specialized structural pipes, fluid pipes, and low- and medium-pressure boiler pipe fine processing technology." There are many seamless steel pipe processing enterprises abroad, and their main business is to do fine processing, steel, etc. Metal raw materials are processed into high-quality seamless steel pipes, etc., for downstream users to purchase and use.

Drawing lessons from foreign steel industry development models, introducing fine processing projects, and establishing specialized metal processing centers. Currently, the main focus is on steel plate development. In the future, companies for processing projects such as steel bars and building materials will continue to settle in.

Transaction method change: Transformation from traditional trade to the integrated operation of e-commerce financial services

"The e-commerce model can not only gather more buyers and sellers to create a "never ending" trading market, but also reduce the time for both parties to find each other, improve transaction efficiency, and directly connect buyers and sellers.".  Under the e-commerce model, after the seamless steel pipe traders get the steel from the steel mill, they can perform rough processing or fine processing according to customer needs, and display and trade the finished products that need to be sold on the e-commerce trading platform. When there is a customer demand, the customer can place an order, place an order, and conduct online transactions on the e-commerce platform. Subsequently, the steel trader arranges logistics for direct delivery.

"The e-commerce platform gathers a large number of buyers and sellers. Traders no longer need to worry about where to find customers, and buyers don’t have to worry about where to find manufacturers. Buyers and sellers all over the world can trade on this platform, shortening both parties. Transaction time." According to third-party statistics, the online trade volume of seamless steel pipes in the United States accounts for 50% of the total. China’s current annual steel trade volume is at least 5 trillion yuan. Seamless steel pipe trade with operational capabilities There are more than 300,000 enterprises, and China's steel network trade volume only accounts for 5% of the total. The domestic seamless steel pipe electronic transaction contains huge market opportunities.