The Survival Model Of Small And Medium - Sized Mineral Trade Enterprises Under The New Environment

Since the reform and opening up, China’s economy and foreign trade have made remarkable achievements, especially China’s booming iron and steel industry. The casting metallurgy enterprises seize the development opportunities to achieve substantial increase in production capacity, production and value-added technology. Thus, the state-owned,local, private go forward in three prong and form a number of the comprehensive, complementary and ancillary private trading companies. Since China’s accession to the WTO in December2001,it has brought a greater impact on the country’s foreign trade policy, the business and the mindset of the people.The contradictions between rapid economic development and resources, the environment what restrain China’s economy are also increasingly prominent to make the industry to adapt to new demands development.In recent years, in order to regulate the iron ore imports, the authorities are planning to control the number of domestic ore traders that will close small steel mills, ferroalloy plant which have the serious pollution and low-tech products. The large-scale local medium-sized iron and steel enterprises, ferroalloy enterprises take the measures with the merger and integration. Country publishes a series of policies to control prices in the real estate market, such as:"five policies" and "new five policies" have a direct impact on the market demand for steel. It can be foreseen that with the national policy control, tore prices will gradually decline. At the same time,the merger centralizes procurement of steel prices, leading to more and more standardized market, leaving small and medium-sized traders and their living space will become increasingly smaller. The iron ore import will be qualified under pressure. Many of small company engaged in embarking on a transformation of the way or starting to open up new sales channels. The global economic crisis is not only a crisis and also an opportunity for small and medium-sized mineral resources trading company that can quickly get rid of primary disorder vicious competition and look for a new model of a healthy way which can match with the overall development trend of China’s iron and steel industry.Since2006,our company has a good grasp of the opportunities and momentum to grow and develop, occupying a place in the fierce competition in the domestic and Minerals Import and Export Trading Company. After the2008financial crisis, the company saw the chances to decide to take advantage of innovation and went ahead in the way of a new round of strategic layout. And our finally purpose is to build a characteristics and irreplaceable new mineral trade enterprises.Small and medium-sized mineral trade circulation enterprises should enhance the comprehensive strength from their own point of view. In the internal, they could use the sophisticated financial means flexibly and avoid the risk caused by trade due to fluctuations in market prices. At the same time, developing health marketing strategy commit to the services of the best quality steel metallurgical enterprises. Pursuing the foreign resources, it could control the risk and strengthen mutual dependence between resource suppliers and end users to the greatest extent possible, in order to achieve pace with long-term healthy development of the iron and steel metallurgy industry.With the rapid development of the domestic steel industry, it also need to be a substantial increase with the supply capacity of mineral and other resource production. As a professional mineral resources trading company, this is a need to be solved strategic issues that how to effectively use domestic and overseas resources, capital credit resources and logistics integration of resources, how to survive from the fierce market competition and how to avoid disadvantage and enhance advantage. For the enterprises, that’s a great guiding significance.