The fluctuating market prices not only make it difficult for iron and steel production companies, but also make it difficult for steel trading companies. Due to business pressure, steel traders have withdrawn from the market every year. In the changing market, steel traders have to worry about their survival.
In April this year, it is the peak season for steel sales. However, the current market status is hard to satisfy. The cost has gone up, prices have fallen, and the market has fallen into "upside down." Steel traders have extremely low sales profits. Most of them lose money and earn money. The steel traders in confusion once again find themselves in trouble. What is the current status of the steel trader's survival? I recently visited the relevant steel trading companies and conducted an in-depth interpretation of this phenomenon.
The current Chinese steel industry is shrouded in a haze of high costs, low prices, and low profits. The fluctuating market prices not only make it difficult for iron and steel production companies, but also make it difficult for steel trading companies.
The profit fell to one-sixth. "The days of steel traders may be in the most difficult period ever. It has never been so difficult." The author visited a spiral pipe production and processing company. The chairman of the company, Li Junqiang (a pseudonym) laments the author. .
"The current production can only be maintained. The volume of contracts is not large, which is a drop of nearly half from the same period of last year." Li Junqiang said that under the pressure of inflation expectations, the country's macroeconomic regulation and control efforts this year are very large, and it has been raised twice in the year. **The reserve ratio, "This has brought a huge impact on the entire steel market, and the pressure on market demand has increased."
The pressure on enterprises is not only that. Li Junqiang said that in the past two years, the pressure of the enterprises is large. In addition to unstable market prices, reduced profits, and operational difficulties, raw material prices under inflation have increased, production costs have increased, and crude oil prices have caused freight to increase. Increases, as well as the production of hydraulic oil, welding rods, and fluxes are all increasing prices, as well as rising labor costs. Workers have to increase their wages each year, resulting in “more and more thin corporate profits.†During the conversation, a phone call came in. Li Junqiang didn't avoid the author. He communicated with the subordinates in front of the author and heard the price of raw materials: “Look, as long as it’s not losing money, just pick it up. There’s really no way. ."
Li Junqiang told the author bluntly that the current profits of enterprises are almost one-sixth of the profits in the past. One ton earns a few tens of dollars, and the slight fluctuations in the market may lead to losses. It is difficult for enterprises to do now. Basically, it is a meager profit, that is, quantity. "The sales volume is very large and the profit is extremely low."
“The price of these two days is still falling. In the end, when is the bottom, whoever is in the heart is out of line.†Under the current market conditions, it is difficult for traders to do it.
The mobility of personnel in large steel trading companies is not stable, and it also imposes a huge burden on the company. When a new employee arrives, he will have to train and come and go is all the expense.
Li Junqiang’s enterprises now have less than 500 people, and each year nearly 100 people have liquidity. “Because of the newly revised labor laws of the country, the guarantees for workers’ benefits have eliminated the guarantees for entry of workers and restrictions on working hours. Makes workers very mobile."
In the investigation, the author found that the liquidity of employees like Li Junqiang is not the largest among the peers, and the liquidity of some employees has reached one third. “We hired more than a dozen people last year and half of them in less than half a year.†At Zhao Yanchun, a steel distributor of processed plates, the author learned that their company’s mobility has accounted for nearly 50% of new personnel in recent years. Faced with unprecedented pressure.
In order to improve employee skills, new employees are required to be trained every year. Because of the strong mobility of personnel, the annual training costs increase a lot. "Training him out after the training, and retraining the new ones, will undoubtedly increase the cost."
It has also been learned that in order to reduce costs, some companies need to work overtime at night because electricity is used at night rather than during the day. Some people do not want to work on night shifts, and three shifts are too tired.
"Some of them did not even say hello when they left the company. There is no way for the company to restrain people."
In April this year, it is the peak season for steel sales. However, the current market status is hard to satisfy. The cost has gone up, prices have fallen, and the market has fallen into "upside down." Steel traders have extremely low sales profits. Most of them lose money and earn money. The steel traders in confusion once again find themselves in trouble. What is the current status of the steel trader's survival? I recently visited the relevant steel trading companies and conducted an in-depth interpretation of this phenomenon.
The current Chinese steel industry is shrouded in a haze of high costs, low prices, and low profits. The fluctuating market prices not only make it difficult for iron and steel production companies, but also make it difficult for steel trading companies.
The profit fell to one-sixth. "The days of steel traders may be in the most difficult period ever. It has never been so difficult." The author visited a spiral pipe production and processing company. The chairman of the company, Li Junqiang (a pseudonym) laments the author. .
"The current production can only be maintained. The volume of contracts is not large, which is a drop of nearly half from the same period of last year." Li Junqiang said that under the pressure of inflation expectations, the country's macroeconomic regulation and control efforts this year are very large, and it has been raised twice in the year. **The reserve ratio, "This has brought a huge impact on the entire steel market, and the pressure on market demand has increased."
The pressure on enterprises is not only that. Li Junqiang said that in the past two years, the pressure of the enterprises is large. In addition to unstable market prices, reduced profits, and operational difficulties, raw material prices under inflation have increased, production costs have increased, and crude oil prices have caused freight to increase. Increases, as well as the production of hydraulic oil, welding rods, and fluxes are all increasing prices, as well as rising labor costs. Workers have to increase their wages each year, resulting in “more and more thin corporate profits.†During the conversation, a phone call came in. Li Junqiang didn't avoid the author. He communicated with the subordinates in front of the author and heard the price of raw materials: “Look, as long as it’s not losing money, just pick it up. There’s really no way. ."
Li Junqiang told the author bluntly that the current profits of enterprises are almost one-sixth of the profits in the past. One ton earns a few tens of dollars, and the slight fluctuations in the market may lead to losses. It is difficult for enterprises to do now. Basically, it is a meager profit, that is, quantity. "The sales volume is very large and the profit is extremely low."
“The price of these two days is still falling. In the end, when is the bottom, whoever is in the heart is out of line.†Under the current market conditions, it is difficult for traders to do it.
The mobility of personnel in large steel trading companies is not stable, and it also imposes a huge burden on the company. When a new employee arrives, he will have to train and come and go is all the expense.
Li Junqiang’s enterprises now have less than 500 people, and each year nearly 100 people have liquidity. “Because of the newly revised labor laws of the country, the guarantees for workers’ benefits have eliminated the guarantees for entry of workers and restrictions on working hours. Makes workers very mobile."
In the investigation, the author found that the liquidity of employees like Li Junqiang is not the largest among the peers, and the liquidity of some employees has reached one third. “We hired more than a dozen people last year and half of them in less than half a year.†At Zhao Yanchun, a steel distributor of processed plates, the author learned that their company’s mobility has accounted for nearly 50% of new personnel in recent years. Faced with unprecedented pressure.
In order to improve employee skills, new employees are required to be trained every year. Because of the strong mobility of personnel, the annual training costs increase a lot. "Training him out after the training, and retraining the new ones, will undoubtedly increase the cost."
It has also been learned that in order to reduce costs, some companies need to work overtime at night because electricity is used at night rather than during the day. Some people do not want to work on night shifts, and three shifts are too tired.
"Some of them did not even say hello when they left the company. There is no way for the company to restrain people."
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