Through the analysis of the development course of China's steel trade industry and the current situation of China's steel trade industry can be found in the whole industry into the adjustment period, the industry enterprise of differentiation in accelerating speed, dominated by steel resources of traditional steel trade form is undergoing profound changes, competition gradually formed the new industry.

 

For steel trade industry the first tier -- national five extra large circulation enterprises, its innovation in business and profit model has been walking in the forefront of the industry. Besides the traditional channels of funding and preponderance, digging their own advantages to form unique core competitiveness, to the upstream and downstream of steel further extension, the construction of logistics distribution and steel processing base, gradually formed a complete industrial chain and the supply chain, earn more profit of circulation. At the same time, some enterprises also establish and gradually improve their team, to better monitor of fluctuations in steel prices, and the use of steel futures market hedging, to reduce the management risk from price fluctuations. In addition, some companies have invested heavily to build commodity e-commerce trading platform, to the enterprise from a single trader to comprehensive service is of great significance. Throughout the industry adjustment period, the enterprise is expected to be with their own advantages in combination with strong ability of risk control to achieve industrial upgrading, and gradually increase the market share in the industry.

 

For other regional large and medium-sized steel trade enterprise, the traditional trade period of steel resources as the leading, with the aid of its own funds and channel advantages, gradually developed into a regional circulation of large and medium-sized enterprises. Some of these enterprises to expand the sales network to surrounding provinces and has the tendency of further expansion, became involved in the upstream and downstream of steel industry, and also established relatively close cooperative relationship with mills, for downstream processing and distribution of professional customer service, constantly enrich varieties of steel trade, trade amounted to more than 3 million tons and has a tendency to increase year by year, in the industry as a whole period of adjustment, is expected to broaden the channels through integration of resources into the first echelon steel trade industry. In another part of the large and medium-sized enterprises engaged in steel trade, due to steel trade is only one of its main business, and because the business profitability has fallen dramatically since 2011 or loss of status, enterprises have to adjust the main contracting steel trade trends.

 

For many little tiny steel trade enterprises, the past only to maintain good relations with steel mills, access to the steel can be profitable model no longer exists, "stock up gambling" mode in the process of decline in steel prices continue to make this type of trader presented the universality of loss. At the same time, due to the more difficult bank loan approval to the steel trade enterprise also blocked some steel trade enterprise inventory for repeated the pledge to defraud loans and investment in other industries, such enterprises steel trade business operation is unsustainable, the risk of capital chain rupture, and lack of self management ability, be being washed out gradually in the fierce competition. In the period of industry adjustment, but at the same time there are still some small steel trade enterprises by strengthening the internal control, cut costs, enhance inventory management, and even "zero inventory" management mode in order to reduce the risk of loss, stay in business in order to wait for quotation.

 

To sum up, the domestic trade, steel trade industry for five years more than ten million tons of heavy national circulation enterprises and regional more than large and medium-sized circulation enterprises, but the concentration degree of the whole industry is still low, considering the supply and demand in the short term is difficult to change the big background, the steel trade market will remain adjustment, large steel trade enterprises use their financial advantage, through upstream and downstream industry chain and supply chain, and gradually improve steel will work with steel mills to form closer relations to enhance bargaining power, and through the construction of logistics distribution base for the downstream customers to provide better service, will be completed gradually from general steel traders to integrated service providers of steel. But for many small steel trade enterprises, some enterprises in the industry is facing increased competition environment very high risk to be eliminated, but because of the large steel trade enterprise sales network is still the main layout in one, second-tier cities, still needs a large number of secondary distributors to end users, so although steel trade industry concentration will increase gradually, but the operating region dispersion, diversification of the service object of small steel trade enterprises still have living space.