Reflection of the steel trading business
The reason why banks tightening the size of the steel trade and industry enterprise loans, the fundamental reason is that the steel trade and business risk in the enlarged, while the fuse is undoubtedly the Wuxi Chau Group Chairman Resting indebtedness Paolu "event. Thus pull the industry repeated pledge loan funds to invest in high-risk industries such issues after fermentation, the final argument that is a bank credit crunch of steel trade enterprises off the loan. The risk of steel trade and industry, mainly in the following two aspects:
First, the steel trading business teller machines of the industrial chain, has always been a huge funding pressure. Steel is a commodity trade required a huge amount of money. In steel production and marketing chain, steel traders in the middle of the industrial chain link steel trading business, on the one hand, the steel plant scheduling requires payment in advance steel trading business, on the other hand, downstream users need advance payment called the steel industry chain, steel trading business teller machines. In addition, funds of about three times the volume of transactions required to count the the steel mills margin, inventory accounting models funds steel trading business single transaction. Such a huge demand for funds, the operation of the steel trade naturally can not do without the support of the bank.
Second, the lack of steel trading business risk awareness, causing financial tensions. In the steel industry during the boom, the easy money, the steel trading business general lack of risk awareness. When the economy came to a standstill when the banks take credit policy sudden attack, the steel trading business caught unprepared, appear to funding constraints.
From 2001 to 2010 was a brilliant steel industry 10 years, only 128 million tons of crude steel production in 2001, up to 627 million tons by 2010, an average annual growth rate of 17.2%. Accompanied by the rapid expansion of the scale of the steel industry, a large number of practitioners who flock to the field of steel trading. According to incomplete statistics, as of 2011, the national number of steel trading business of over 20 million.
The influx of large amounts of capital from the high profit margins generated by the high-speed development of the steel trade and industry. The report pointed out that, from steel mills to flow to end users in the past 10 years, the average profit per tonne of steel up to 300 yuan to 500 yuan (median $ 400). Suppose ton of steel the average profits steel mills and traders, traders profits of up to 200 yuan per ton of steel. Conservative calculation of two months in accordance with the cash conversion cycle of the steel trading business, 30% of the annual investment rate of return of the steel trading business (steel prices is assumed to be 4000 yuan / ton). Time context, even net of 15% to 20% of the cost of capital, the steel trading business is still profitable.
These years of rapid development in the industry, most of the steel trading business did not choose the enterprise stronger, doing fine, but through the extensive mode of development management, rely on volume growth to achieve the expansion of business scale. Mutations until the situation in the industry, they came to the understanding that they face credit test of the steel trade and industry as a whole.
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