Pricing Strategy For Xlsteel Group Of Iron Ore Purchase

At present,the global economy slows down,Under Chinese new normal operation of economy,China's steel demand will no longer maintain previous high-speed growth.In cases of lack of steel demand at home and aboard and steel price is lower than cost of production,Xlsteel Group doesn't make a profit in recent years.It's the fundamental problem to think of how to further reduce procurement cost and make up the deficits and get surpluses.The procurement cost of iron ore accounted for 80% of the total cost of raw materials of Xlsteel Group.The decline of procurement cost of iron ore will directly promote the steel profits on sale,so the research of the pricing strategy for iron ore purchase is crucial for Xlsteel Group.In academic research,the domestic and foreign scholars have many research results for iron ore pricing,most of the researches focus on the evolution of the long-term agreement pricing mechanism and impacts on steel enterprises,quarterly index pricing characteristics a nd analysis for determined factors of pricing of marine iron ore,but the angle of view is mainly based on marine iron ore market of three mines,there exists a certain blank on analysis of transportation imported iron ore market and research of pricing st rategies.In fact,iron and steel enterprises in border area are use of geographical advantages that take the way of transportation of imported iron ore.In this background,this paper selects Xlsteel Group as the object of research,show to readers gradually from different choices of market to strategic selections of corresponding market pricing.Based on the current situation of the international iron ore market,this paper comes up with reference pricing for Xlsteel Group that through the long-term agreement pricing mechanism and quarterly index pricing mechanism.At the same time,we can indicate the operability of market under index pricing through the analysis of the supply and demand curve.Analyze the procurement market structure of iron ore and study the share of supplier market.Analyze the problems of existing pricing strategy from the market changes,the seller behavior and transaction cost.Analyze the excess profits of seller by model and prove the seller collusion behavior by comparing actual p rice of transaction.Compare the effect of long-term agreement pricing mechanism with quarterly index pricing mechanism and combine with specific requirements of procurement of Xlsteel Group and seasonal factors,so that put forward a pricing optimization with corresponding strategy.This paper select Xlsteel Group as the object of study and show the selections of pricing strategy of iron ore purchase which involved pricing mechanism,structure of market,comprehensive cost and seasonal factors,etc.It provides reference for iron and steel enterprises in border area to make a price of iron ore procurement and offer a useful reference for managers of enterprises.