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Steel trading industry to save if first when refused to blind expansion

Steel trading industry has increased dramatically in the delta, but the steel trading enterprise to buried the many hidden trouble. And some speculators and ChaoZuoZhe run in others, but after the crisis, these enterprises have appeared dishonest behavior. Eventually led to the industry in the credit crisis. Steel trading industry to go out of the crisis, you must put the eliminated.
 
Wuxi a steel trading market the boss and the chairman of the company LiLong guarantee (a pseudonym desk have with a thick book. Keep detailed records of more than 400 customers with its loans, including the loan amount, time, interest amount, loan repayment situation. If there loans or unable to pay interest, LiLong will in this column situation reimbursement with purple with felt-tip painting a.
 
In march this year, before the notebook of LiLong on the black and white or pure, each merchants can seasonable reimbursement, and successfully completed for loans. But since march first appeared after the occurring of pen, merchants to pay the debt is uncontrollable. The notebook of LiLong purple HuaDao more and more. In may, full of a sheet of paper covered almost all be purple. "According to reflect, at present the merchants 20%-30% of the people unable to repay the loan or interest. But our actual survey found that really fell to the situation of the merchant only 5%." LiLong in accept the China sankei shimbun reporter to interview helplessly say, influential businessmen for many years of good faith is saved under enormous crisis.
 
The crisis has both part of the subjective factors influential businessmen, also have the market downturn environment the objective factors. In 2009 and 2010, steel trading industry received the golden period of development. With high integrity of the past, steel trading enterprise can very easily get a loan from the bank, the steel trading enterprise scale to expand rapidly. At the time, many steel trading enterprise salesman with the hands of upstream and downstream resources and bank loans independent opened the company, some business owners are suddenly become steel trading market the boss.
 
"To date, wuxi area and influential steel trading market has as many as 57, wuxi native operating steel trading market and home. And in a decade or two years before 2008, the number of steel trading market is less than 1/10 of the now." LiLong said.
 
Steel trading enterprise of the blind expansion is the consequences of vicious competition. "Since the second half of 2010, the business obvious difficult. Those who come to our active before sign the bill of the construction site, such as office rank we pray to the door. And our payment first value of 1 million-5 million yuan of steel, until the building project completion will give money to us. That can't, the business is being robbed." In LiLong steel market running a steel trading enterprise of Mr. He reluctantly told the China sankei shimbun reporter.
 
Rob cake and more people, and the cake was suddenly smaller. The second half of 2011, real estate control policy transmission to steel trading enterprise. Steel sales slowed sharply, margins in precipitously. "On the one hand, not the sales and profits of the guarantee, plus site and the government of the project was slowly was unable to reach the designated position, traders faced a huge financial pressure. On the other hand, shrinking market, a few businesses get loans and no business to do, he took the money to profligacy, finally also unable to repay the loan." LiLong said.
 
In under great pressure, many businesses began to come up with a bad idea. They began to want to let the guarantee for they also money, some even taken run road or commit suicide extreme measures. The outbreak of these events the whole steel trading industry into outlet wave. Since then, steel trading industry to the social from all walks of life left no good faith impression. "So do only a consequence is to steel trading market, and guarantee the company pulled together to death." LiLong said. He suggested, steel trading industry will want to spend the crisis, will guide the malicious of merchant regression integrity, gore who were not changed to remove it. Only so steel trading industry to complete ashes.
 
For capital-intensive industries of steel trading businesses, the good faith is the most important. For now, the crisis will naturally make steel trading industry reshuffle. Can stay must be those who pay attention to the good faith, the abundant funds of large steel trading enterprise. Speculators, who will inevitably be hype out of business. Therefore, steel trading enterprise must grasp the good faith shut.
Therefore, the government should publish corresponding measures to crack down on businesses don't trust ACTS, and allow lose the market competitiveness of the enterprise went bankrupt, withdrawn from the market. In order to improve the industry concentration, in order to avoid such a thing happening again.
 
For those good faith good enterprise and the government can further support. "The government should intensify the steel trading enterprise accounting supervision, can put the integrity of the excellent enterprise recommend to the bank for a loan to speed up the pace of its out of trouble." WangGuoQing said.
 
Finally, steel trading enterprise must reflect on the event. The pioneer circulation productivity promotion centers in HeRongLiang analysts accept the Chinese sankei shimbun reporters: "now steel trading environment, is in the economic development of the changes in the cause of the problem is the financial capital, through to the steel trading business field, steel trading industry mature need to experience the stage. The future how to use credit means steel trading business, what goals, what is the way of operation, that every enterprise need to consider the question."




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