During October 28-31, SteelHome 2012 Steel Market Seminar& Top 100 China Credible Steel Traders Award Ceremony II is held in Huangshan, Anhui. About 700 delegates from steel mills, distributing circles, relevant industries and press agencies participated in the conference.

New changes show at China’s steel market this year. Steel distributing circles face many emerging challenges as well opportunities. On the conference, Tsai Jin, vice president of the China Federation of Logistics and Purchasing (CFLP), exchange ideas with participating representatives on how to grasp the market trend and how to promote distributing circles’ innovation and upgrading.

Mr. Tsai upholds that, the influence of market tendency alterations on steel distribution has weakened; hence constant relying on the tendency seems blind and passive. Distributing circles must perceive market demand on a long-term base, and innovate the circles’ mode.

A consensus goes that, under such an economic pattern, a weakening market demand is along with the trend, perennial and irreversible. The circles are preferential to fully understand that the capital-goods market start entering a post-enlarging time, which means slackening growth and squeezed profit margin. Their business practice and profit mode are in a hard time, needing transformation and promotion, in a bid to satisfy the new requests put forward in the process of production mode changes.

Firstly, social economic production mode’s transformation & upgrading should be taken into account, for transformations are happening under the context of the society as a whole. China’s production mode for now is on transition from batch production to refinery production. The former is featured as less-considering-cost, while the latter requests limited quantity, more batches, low inventory and fewer segments. The transformation requests are not only on price but good timing on delivery as well. And manufacturers ask distributing enterprises a relatively close and constant circulation channel.