This year's steel demand increased slightly, and the steel price fluctuated slightly at a high level
on the occasion of the 2018 two sessions, renqingping, vice president of Shanghai Steel Trade Chamber of Commerce and chairman of Shanghai wubo steel structural materials Co., Ltd. (hereinafter referred to as wubo company), said that from the work objectives and economic development trends determined by the two sessions, this year's domestic steel demand will increase slightly, and the steel price or high level will fluctuate slightly, with limited fluctuations up and down
in the past 2017, under the influence of the national policy of banning "ground bar steel" and resolving steel overcapacity, steel prices have risen all the way. However, the rise in steel prices did not drive the profits of steel trading enterprises. If the relevant parts did not meet the requirements and were put into use, it would increase. "In 2017, the profitability of wubo company was not as good as that in 2016." Ren Qingping said, "The rise of steel price has a great impact on the company's terminal sales business. Due to the fixed gross profit of purchase and sales, the company's profit margin has been significantly reduced compared with the annual budget. At the same time, due to the restart of the interest rate hike in the US dollar, the central bank has kept the statutory interest rate unchanged, and the real interest rate in the capital market has been rising, resulting in a sharp rise in the discount rate of notes, causing the discount fee to soar. The company's financial expenses in 2017 have nearly doubled compared with 2016, which has seriously affected its operating profit Run. In 2017, the company's steel sales volume was the same as that in 2016, but the benefits decreased by more than 20%, mainly due to the increase in financing costs and operating expenses, which squeezed corporate profits. "
when talking about the situation faced by the steel market in 2018, Ren Qingping said that we should pay attention to the relevant contents in the government work report. The government work report points out that in 2018, we will promote the sustained and healthy development of economy and society, and the GDP will grow by about 6.5%; Substantial progress was made in the supply side structural reform, the macro leverage ratio remained basically stable, and various risks were orderly and effectively prevented and controlled. The government work report also pointed out that 732billion yuan of railway investment, 1.8 trillion yuan of highway and water transportation investment and 1trillion yuan of water conservancy investment under construction will be completed this year; 200000 kilometers of rural roads will be built and rebuilt, and major infrastructure construction will continue to tilt towards the central and western regions. Ren Qingping believes that this will inject strong impetus into the improvement of steel demand
when talking about how steel traders will operate in 2018, Ren Qingping said that steel traders should be good at finding and grasping the growth point of steel demand and expanding the market. For example, steel traders should pay attention to the potential steel demand of the "the Belt and Road" and take the initiative to explore the market. It is understood that over the past few years, more than 50 large state-owned enterprises and more than 20000 private enterprises have invested in more than 1700 projects in countries and regions along the "the Belt and Road". Ren Qingping said that wubo company has investigated the steel demand and local steel market operation in countries and regions along the "the Belt and Road", and has established steel distribution points in a country in Southeast Asia. This year, it will also establish several steel distribution points in some countries where wearable equipment needs high-performance materials with fashionable appearance, plastic recycling in essence and reduced use, which are comfortable to touch and easy to design and process, Strive to raise steel sales to a new level
Ren Qingping revealed that new opportunities have emerged in the construction of new urbanization in 2018, and the construction proportion of urban infrastructure, environmental protection, energy (such as hydropower, electricity, etc.) projects and affordable housing will gradually increase. In this regard, wubo company will timely adjust its business strategic layout, rely on the company's relationship and resource advantages, focus on the development of engineering projects in energy fields such as affordable housing, urban infrastructure, hydropower, and strive to develop new business growth points
in 2018, steel trading enterprises should strengthen their awareness of risk prevention and enhance their profitability in steel trade. Ren Qingping said that wubo company will classify and evaluate the downstream end users of steel products, increase the investment of financial resources for those customers with strong strength, good reputation, short payment collection cycle and high profits, and tilt resources to high-quality customers or projects, so as to maximize business benefits and effectively prevent and control the company's business risks. At the same time, wubo company will also pay close attention to the purchase and sales price of each distribution business, carefully determine the unit price of each bidding business, control the risk of each business, and tap the maximum profit potential of each business. On the premise of reducing the overall business risk of the company, improve the profitability. Ren Qingping pointed out that even when exploring the "growth points" of steel demand in the "the Belt and Road", we should strengthen the awareness of risk prevention. For example, when doing steel export trade, we should fully understand the local customer demand and price level, fiscal and tax policies, laws and regulations, and so on. At the same time, we should do a good job in exchange rate hedging
in 2018, steel traders should do a good job in the research, analysis and prediction of steel market changes, and combine direct selling with distribution to improve profitability. "Control the market, operate carefully, and the whole transaction method is mainly based on one order and one discussion, cooperate with the supply chain, reduce costs and increase efficiency, and increase profits. At the same time, strengthen operation management, strengthen the function of feedback control and supervision in the operation process, prevent and control risks, and strive to achieve a good harvest in 2018." Ren Qingping finally said