Steel trader “Western Gold Rush” still needs to think twice

Nowadays, “Western Gold Rush” seems to be the best choice for the steel trade enterprises in the eastern region to seek survival and development. The “Western Tide” is on the rise, and some steel traders have set foot in the first place, camping there and preparing for a big deal. However, people in the industry have to be cautious about steel traders “westward gold rush”, and they still need to think twice before rushing. When the general manager of a steel trade company in Shanghai was interviewed by the reporter, he introduced his company's experience of “westward advancement” and was very inspiring. This is a steel trade enterprise specializing in steel products such as rebar and wire. The annual sales volume is 500,000 tons. It is a steel trade enterprise with a certain scale in Shanghai and one of the top 50 steel trade companies in Shanghai. With the completion of the Shanghai World Expo venues and a number of major municipal infrastructure projects, the demand for construction steel in Shencheng has gradually decreased, and the market competition has become increasingly fierce. The decision-makers here are considering moving away from Shanghai and preparing to go to the west. , open up the western market. They believe that the country's decision to focus on the development of the western region will inevitably drive demand for steel, especially for construction steel such as rebar and wire. The demand will increase significantly, thus strengthening the early determination of the West. How to move west? Before the Westward Advancement, the company's policy makers went to Chongqing, Chengdu, Xinjiang and other places to conduct on-the-spot investigation and inspection of the steel market supply and demand situation, and mastered the local steel trading model, and found that the steel trading methods in Shanghai are not the same. In terms of business philosophy, there is also a long way to go. To this end, the company's policy makers conducted research and felt that they could not act rashly. They only set up a distribution point in Chongqing and sent some operators to familiarize themselves with the local market environment, and gradually expanded on this basis. In this gradual and orderly manner, one year later, the operators of the distribution points in Chongqing gradually adapted to the local market environment and opened up sales channels. The sales of construction steel gradually increased. After that, the steel trade company used the same method to set up a distribution point in Chengdu as a pioneer of Xijin. After gaining experience, it gradually expanded. Now, the pace of the Westward has increased, and the effect has become apparent. Last year's sales of construction steel reached 100,000 tons, although the sales volume of the Shanghai headquarters was much less than that of the Shanghai headquarters. The general manager here told reporters that it is not so easy to go to the west to open up the market. Where is the “gold rush” is not simple, can't be blind, and thinks that it is not the same thing to make big money in the west. However, this CEO is still full of confidence in the development of the market by Xijin. He believes that the country’s “Twelfth Five-Year Plan for Western Development” is being implemented. According to this plan, during the “Twelfth Five-Year Plan” period, the infrastructure construction in the western region will be Significantly accelerating, such as the initial formation of an integrated transportation network, a two-hour traffic circle has been basically built in key urban agglomerations, which basically realizes the township's oil-passing roads and villages and villages. Accelerate the formation of the main skeleton of the railway network in the western region. The scale of the road network is about 50,000 kilometers, the double line rate is over 50%, and the electrification rate is over 60%. The mileage of railways has increased by 15,000 kilometers, the water conservancy infrastructure has been significantly strengthened, the water supply, flood control and disaster mitigation capacity has been significantly enhanced, and the harmless treatment capacity of newly added domestic garbage is 120,000 tons/day. These infrastructure constructions require steel. With the "Twelfth Five-Year Plan for Western Development", the demand for steel products is very large. For steel trade enterprises, business opportunities are bound to be achieved in the western region, and the development prospects are broad. However, there is a process for the release of steel demand, which is gradual. For now, the demand for steel in the western region is not as strong as people think. It seems that once the west reaches the gold, steel traders want to try and do it. The dream of "westward gold rush". This is unrealistic. Recently, the general manager of a steel trade company said in an interview that he once brought a group of company operators to Chongqing to conduct market research. He wanted to open a large steel market in Chongqing and introduce Shanghai steel traders. In the local development market, as the second venture of steel trade enterprises. After field research and investigation, this plan has not been implemented, and so far I dare not make this determination. The reporter asked what the reason is. The boss said that the market environment, trading model, business philosophy, etc. are not the same as Shanghai, and they are not suitable. The land is not familiar with people, let alone make money, and do not make money. There is a possibility of being cheated, and the market is very risky. Steel trade enterprises have to think twice before making gold in the west. Then, how can steel trade enterprises go to the west to open up the market and seek development? In this interview, some market participants said that they conducted research on the situation of steel trade enterprises in Shanghai to go to the west to start a business. Most of the methods adopted by the company were to follow the construction engineering team and provide steel for the construction team. Originally, these construction engineering companies are long-term partners of Shanghai Steel Trade Enterprises. After more than ten years of cooperation, they are very familiar with each other and trust each other. There is no risk in operation. When the construction engineering companies undertake major infrastructure construction projects in the western region and go to the west for construction, Shanghai's steel trade enterprises also follow the engineering team to purchase steel in the local or surrounding areas where the engineering team is constructed, if the local steel The difference between the market price and Shanghai is that the resources of Shanghai will be shipped to the local area, and the steel will be sold to the west. The steel trade company will only settle with the end user of the construction engineering company, avoiding the risk caused by “unfamiliar people”. . This kind of trade mode of “following end users to expand into the market in the west” is safe and reliable for steel trade enterprises. At the same time, it is convenient for steel traders to gradually become familiar with the market environment and trading mode, and lay the foundation for the development of the western region alone in the future. The bosses of some steel trade companies said that "following the end users to expand the market in the west", this is a path for the Shanghai-based steel trade enterprises to enter the west. Judging from the fact that some market participants have mastered the development of steel trade enterprises in the west, it seems that there is no expectation of “westward gold mining” as some steel traders imagined. Some steel trade enterprises have felt the steel market demand there after they arrived in the west. It is not strong, the market is also weak, and the competition is fierce. I feel that “the west is not an unexplored 'fatfield'”. “Before I was full of hope, I was disappointed.” Therefore, market participants reminded steel trade enterprises to go to the gold market. It must be calm and rational, and must not be rash and act rashly. Before the westward advancement, we should fully understand the local steel production, steel demand, steel trade enterprise status, steel market environment and business rules, and then based on itself. The actual situation, for all-round considerations, and ultimately make a choice, first explore the road, after the layout, and then advance, step by step, steady and steady, in order to take less detours, and achieve practical results. At present, steel traders blew the horn of “going to the west” and shifted the sales focus westward. The westward Nuggets have become the strategic goal of some merchants. Here, it is recommended that steel trade enterprises enter the gold mining industry in the west, and it is necessary to think twice before proceeding.

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