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Seamless steel pipe industry contradiction spawned a new way of steel trade

Seamless steel pipe e-commerce mushroomed after a spring rain, the traditional steel trading model has been impacted.

An industry analyst believes that seamless steel pipe e-commerce development and seamless steel pipe market downturn and frequent industry credit crisis has a lot to do. At present, the supply of seamless steel pipe market exceeds the demand, and the product inventory is high, the sales channel is not smooth, resulting in high transaction costs, low profits, which makes some enterprises fall into the vicious circle of credit crisis.

In this case, e-commerce with faster transaction speed, lower transaction costs, more convenient transaction methods to reduce the negative impact of traditional transactions, and then by many steel enterprises and traders wide attention.

In addition, seamless steel pipe from the steel mill to the end customer before, need to be distributed by multi-layer agents, intermediary agency cost per ton is 50 yuan ~60 yuan. After the emergence of seamless steel pipe e-commerce, due to the transparent quotation and completion of transparency, end customers can find cheaper, closer and more convenient goods on various platforms, breaking the circulation pattern of traditional steel trade enterprises “eat price difference”. Therefore, as one steel trader who has been engaged in steel trade for 14 years said: “Seamless steel tube e-commerce platform provides open and transparent price, logistics, capital, payment and other links are more convenient than the traditional transaction mode. These advantages make the development of seamless steel tube e-commerce inevitable.”

Of course, when it comes to the rapid development of seamless steel pipe e-commerce, environmental influence is indispensable. Not only is the main sales channel of traditional trade — traders in 2012, 2013 appeared a wide range of closures. Moreover, due to the reversal of the supply and demand relationship in the industry, from the seller’s market to the buyer’s market, the prominent value of the channel also makes the industry need new channels to replace the inherent model. Therefore, the birth of seamless steel pipe e-commerce in this environment is the “general trend”.

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