Steel trade companies need to profit, so a few core elements:
 
First, the cost of capital bargaining power ,to obtain capital and operational scale to match the resources that can support enterprise development;
 
Steel trade, for example, need to borrow money to inject liquidity into the banks at low interest rates, then, first of all steel trading business need qualified, steel products, stock or real estate collateral risk control;
 
Second, the pricing power of the downstream, reasonable pricing, accurate market positioning, and suited to market demand;
Here mainly refers to the price advantage of the steel trading business operated by the steel products;
 
Third, the bargaining power of upstream steel resources.
 
Close to the large steel trade and steel does not have the bargaining power; although the steel will make the appropriate adjustments based on changes in market prices, but prices change rapidly, almost day one change between the steel mills and steel mills with qualitative market competition; today's purchase is the price tomorrow, down 20-30, or even more, not including the personnel office, transportation, warehouse rental, recently the market has been a continuous fall, and even steel are not making profits, the steel trade can only be Hexibeifeng.
 
The profitability of the steel trade mode of failure, the core of the three ability, a large number of steel trade have close to departure, and not difficult to understand.
 
Downstream of a single steel traders forces too small, like this upstream steel mills and steel trade large downstream of the small steel trading business operations more difficult proudly dimension; bank loans on a single trader of steel support is minimal.
 
Although there are a lot of steel trading business, struggling to support, want this day to hurry past, some steel trading business and even reluctant to talk about the topic of the steel and the like, we can imagine, steel prices is how bad it is.
 
July price of steel prices can be broadly identified: not much changes in the market, although the macro-mostly good, but the rigidity of the steel demand does not seem to have any substantive impact; some analysts have said, this is a wave of warm boiled frog, "the market, lukewarm water prices will make further tightening the steel trading business days, more sad.



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