In 2015, the Chinese steel manufacturers faced double challenges. On the one hand the economic slowdown lead to decreased demand domestically and a historical low price in the market. On another hand the web internet and mobile internet had changed steel industry in China. Internet has a deep influence on the marketing, R&D, production, logistics and business management almost every aspects in steel industry. Nowadays, steel manufacturers have to adapt to the economic slowdown and also the changes of technology.
In order to face the double challenges, there are five comments brought up by our president:
1. Sense of Crisis. It is very necessary to be prepared for any emergency, such as economic slowdown, decreased market demand, decreasing market price ect.
2. Pay attention to the corporate management. Try to find a balance among profits, cash flow, future development. Only the profitable enterprises have the confidence to invest future development and professionals. Only the healthy and sufficient cash flow create the possibility to get through any economic slowdown or unstable market demand.
3. Improve the ability to innovate. The world is changing, technology changes the way to do business. Therefore, enterprises should innovate in various places, such as new products development, customer services innovation, new technologies applied in production ect. Innovation is the only way to maintain the prosperity of a enterprise, experiments will always lead the company pass through any challenges.
4. Optimize and enhance a unique business mode. Unique business model means the most suitable business type that competitors can not take away from you.
5. Fully embrace the Internet. Taking advantages of the new technolgoy to change the way we communicate.
2015/11/26
ADIPEC 2015 Abu Dhabi International Petroleum Exhibition and Conference
ADIPEC, referred as the Abu Dhabi International Petroleum Exhibition and Conference, is one of the world's most influential Oil and Gas exhibition and conference. The first ADIPEC was hold in 1984 in Abu Dhabi, after that the country decided to hold this big event every two years. With the fast developing of the international oil and gas industry, the attendees keep growing. In 2010, there were 1502 companies attend in this exhibition, and over 45597 company decision makers from 91 different countries. In order to meet the attendees' needs from different countries, the exhibition space kept expanding. In 2013, the ADIPEC had became an annual event to welcome more attendees internationally.
ADIPEC is held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahayan, and organized by DMG. It has become the largest exhibiton for Middle East Oil and Gas industry. It is supported by Abu Dhabi National Oil Comapny (ADNOC) and the UAE's Ministry of Energy. Every Novermber, AIDPEC will have a strong focus on oil and gas, reflecting its increasing share of the global energy mix and heightened regional oil and gas demand for power generation.
In 2015, the latest ADIPEC was hold during November 9 to 12. There were over 95,555 attendees from different countries and over 130,000 gross exhibition space opened in this exhibition. At this event, visitors could see more than 1600 local and international oil and gas companies, hear from 306 regional and international spearkers at the regions largest conference, and also network with more than 4000 delegates and 45000 attendees. Moreover, this is a good chance for people in the oil and gas industry to learn knowledges and updated technologies through 4 days of technical sessions, panel sessions, and executive sessions. It is a very good opportunity to expand business with the largest gathering of NOC's and IOC's in the Middle East.
Attending ADIPEC is one of the influential brand marketing strategy to increase industry recognition internationally. In this year, Shinestar Holdings Group decided to join this big event and present our professional team and quality products in front of our potential clients internationally. During this significant event, we have increased our brand awareness, meet potential clients face to face, create more cooperating chances with clients from different countries.
ADIPEC is held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahayan, and organized by DMG. It has become the largest exhibiton for Middle East Oil and Gas industry. It is supported by Abu Dhabi National Oil Comapny (ADNOC) and the UAE's Ministry of Energy. Every Novermber, AIDPEC will have a strong focus on oil and gas, reflecting its increasing share of the global energy mix and heightened regional oil and gas demand for power generation.
In 2015, the latest ADIPEC was hold during November 9 to 12. There were over 95,555 attendees from different countries and over 130,000 gross exhibition space opened in this exhibition. At this event, visitors could see more than 1600 local and international oil and gas companies, hear from 306 regional and international spearkers at the regions largest conference, and also network with more than 4000 delegates and 45000 attendees. Moreover, this is a good chance for people in the oil and gas industry to learn knowledges and updated technologies through 4 days of technical sessions, panel sessions, and executive sessions. It is a very good opportunity to expand business with the largest gathering of NOC's and IOC's in the Middle East.
Attending ADIPEC is one of the influential brand marketing strategy to increase industry recognition internationally. In this year, Shinestar Holdings Group decided to join this big event and present our professional team and quality products in front of our potential clients internationally. During this significant event, we have increased our brand awareness, meet potential clients face to face, create more cooperating chances with clients from different countries.
Chinese Steel Industry in the next 12 month
"In the next 12 month, the Chinese steel market will be in a further deterioration situation due to the weak domestic demand in China."Moody's Investors Services Company said. Under the situation of economic slowdown in China, the investment development of real estate and infrastructure has slowdown, and also the steel manufacturing is still weakening. In addition, due to the decline rate of eliminate production capacity is slower than the rate of deceleration in demand, the profitability for Chinese steel manufacturers will be further weakened. The slowdown of domestic demand exacerbated the over capacity situation in Chinese Steel Market which lead to the Chinese steel pirice fell to the historic low.
Moody expect that in the next 12 months, Chinese domestic steel demand will decline 5%. Although the export growth can release part of pressure created by the falling domestic demand, the overall sales in the steel industry will continue to decline 3% to 4%. Due to the fall in raw material prices are no longer able to offset the steel price decline in the maket, according to the Chinese Iron and Steel Industry Association, in 2015 the profit of medium-sized steel companies has to face a loss in the previous 8 month. However, many companies keep struggling by halting production and selling other assets, which slowdown the process of reducing the production capacity in the market.
Overall, many small companies will be the first batches exit the steel market due to the financial pressure and limited resources. Moody's believes that in the next 1 to 2 years the production capacity will keep reducing and the restructuring process will keep accelerating. However, Baosteel Group Corporation, Shinestar Holdings Group and other leading companies will gain more market share due to their product strength and capacity expansion.
Moody expect that in the next 12 months, Chinese domestic steel demand will decline 5%. Although the export growth can release part of pressure created by the falling domestic demand, the overall sales in the steel industry will continue to decline 3% to 4%. Due to the fall in raw material prices are no longer able to offset the steel price decline in the maket, according to the Chinese Iron and Steel Industry Association, in 2015 the profit of medium-sized steel companies has to face a loss in the previous 8 month. However, many companies keep struggling by halting production and selling other assets, which slowdown the process of reducing the production capacity in the market.
Overall, many small companies will be the first batches exit the steel market due to the financial pressure and limited resources. Moody's believes that in the next 1 to 2 years the production capacity will keep reducing and the restructuring process will keep accelerating. However, Baosteel Group Corporation, Shinestar Holdings Group and other leading companies will gain more market share due to their product strength and capacity expansion.
2015/11/19
Container Size Summary
20-foot container: internal dimensions 5.69 m X 2.13 m X 2.18 m / picking gross weight is generally 17.5 tons / volume 24-26 cubic
40-foot container: internal dimensions 11.8 m X 2.13 m X 2.18 m / picking gross weight is generally 22 tons / volume 54 cubic
40 high cabinet: internal dimensions 11.8 m X 2.13 m X 2.72 m / picking gross weight is generally 22 tons / volume 68 cubic
20-foot refrigerated: internal dimensions 5.42 m X 2.26 m X 2.24 m / picking gross weight is generally 17 tons / volume 26 cubic
40-foot refrigerated: internal dimensions 11.20 m X 2.24 m X 2.18 m / picking gross weight is generally 22 tons / volume 54 cubic
40 high refrigerated: internal dimensions 11.62 m X 2.29 m X 2.50 m / picking gross weight is generally 22 tons / volume 67 cubic
45-foot refrigerated: internal dimensions 13.10 m X 2.29 m X 2.50 m / picking gross weight is generally 29 tons / volume 75 cubic
20-foot open top container: internal dimensions 5.89 m X 2.32 m X 2.31 m / picking gross weight 20 tons / volume 31.5 cubic
40-foot open top container: internal dimensions 12.01 m X 2.33 m X 2.15 m / picking gross weight 30.4 tons / volume 65 cubic
20-foot flat-bottomed container: internal dimensions 5.85 m X 2.23 m X 2.15 m / picking gross weight 23 tons / volume 28 cubic meters
40-foot flat-bottomed container: the size of 12.05 meters within meters X 1.96 X 2.12 m / picking gross weight 36 tons / volume 50 cubic meters
45-foot container: the size of 13.58 meters within meters X 2.71 X 2.34 m / picking gross weight is generally 29 tons / volume 86 cubic
A number of private steel enterprises in China are under pressure
There are a number of private steel enterprises have shut down in the City of Tangshan, for example Songjeong Steel Company. Till today, there is nearly 15 million tons of steel production capacity has out of the market. Under the background of low price for steel products and also raw materials, the dilemma of Tangshan steel industry could be a microcosm of the entire industry in China. Under this market situation, the fate of the private steel enterprises are under greater pressure. Decrease productivity passively and internal re-organization has became the steel industry strategy taken by the enterprises.
Reporters learnt that Tangshan Songjeong announced the shutdown of steel mills on the Nov 14th. This is the second steel mills which has the capacity over 500 tons per year announced the shutdown. Due to high debt and capital chain pressure, the Songjeong has to discontinue its operation. With the shutdown news spread, steel industry re-organization and integration is also gradually starting. In 2015 September, the bankrupt Haixin Iron and Steel now is taking over by Jianlong Group. Now the re-organized company is in full implementation of the restructuring plan. " In the current severe overcapacity situation, re-start the production line basically is a operating loss, we may give more consideration to hold up the cash flow first" Senior researcher Shangzheng Bao told reporters. Once stopped production lines, the pressure for re-star the production line is greater. Although keep the production line will create more losses, many steel enterprises is still struggling to maintain the cash flow of bank credit. " if now dis-continued, and so next year might never open it up, we are now still holding on" Liu told reporters.
Although there are some small steel factories began to cut production quantity in Beijing & Tianjin area, but the actual impact of the industry on the overall production capacity is not obvious. Analyst Liu Yuehua told reporters that the daily production quantity can probably be reached from 520000 tons /day to 48 tons /day in the current area of Tangshan area. This is equivalent to an annual capacity reduction of 12 million tons. Compared to the original 156 million tons annual capacity, this reduction quantity is not obvious enough to influence the whole steel industry. Control capacity in the steel industry priority. " China has about 300 million tons of excess capacity, we need to cut and completely clearing the excess capacity as soon as possible." David Humphreys said, who worked in Rio Tinto as a economist before. As the same time, the government intent to adjust the energy production structure in the next five year. Therefore, there is no need to count on the policy level of aid interventions which means the small and medium sized private enterprises will suffer more than state-owned enterprises. We believe the result of market choices will promote the industry's capacity clearing and final upgrade.
Reporters learnt that Tangshan Songjeong announced the shutdown of steel mills on the Nov 14th. This is the second steel mills which has the capacity over 500 tons per year announced the shutdown. Due to high debt and capital chain pressure, the Songjeong has to discontinue its operation. With the shutdown news spread, steel industry re-organization and integration is also gradually starting. In 2015 September, the bankrupt Haixin Iron and Steel now is taking over by Jianlong Group. Now the re-organized company is in full implementation of the restructuring plan. " In the current severe overcapacity situation, re-start the production line basically is a operating loss, we may give more consideration to hold up the cash flow first" Senior researcher Shangzheng Bao told reporters. Once stopped production lines, the pressure for re-star the production line is greater. Although keep the production line will create more losses, many steel enterprises is still struggling to maintain the cash flow of bank credit. " if now dis-continued, and so next year might never open it up, we are now still holding on" Liu told reporters.
Although there are some small steel factories began to cut production quantity in Beijing & Tianjin area, but the actual impact of the industry on the overall production capacity is not obvious. Analyst Liu Yuehua told reporters that the daily production quantity can probably be reached from 520000 tons /day to 48 tons /day in the current area of Tangshan area. This is equivalent to an annual capacity reduction of 12 million tons. Compared to the original 156 million tons annual capacity, this reduction quantity is not obvious enough to influence the whole steel industry. Control capacity in the steel industry priority. " China has about 300 million tons of excess capacity, we need to cut and completely clearing the excess capacity as soon as possible." David Humphreys said, who worked in Rio Tinto as a economist before. As the same time, the government intent to adjust the energy production structure in the next five year. Therefore, there is no need to count on the policy level of aid interventions which means the small and medium sized private enterprises will suffer more than state-owned enterprises. We believe the result of market choices will promote the industry's capacity clearing and final upgrade.
2015/11/17
How to successfully market yourself to your clients?
1. Confidence, positive attitude. The first step to talk with your clients is not sell your products, is to sell yourself. The first step is to build trust with your clients by your positive work attitude and confidence.
2. Professional Outlook. Business dress gives your clients the signal of professional, and a good first impression.
3. Help your clients, solve his problems or concerns by using your knowledge, information you received from your associate, and your boss. Let your clients know that you are using all you resources to help your clients.
4. Talk with your clients like friends. Build trust by communication.
5. Pay attention on the person around your clients, and understand who has the ability to influence the final decision.
6. Show your respect and willingness to listen.
7. Show your professionalism by your name card, your paper work handed to your clients.
2. Professional Outlook. Business dress gives your clients the signal of professional, and a good first impression.
3. Help your clients, solve his problems or concerns by using your knowledge, information you received from your associate, and your boss. Let your clients know that you are using all you resources to help your clients.
4. Talk with your clients like friends. Build trust by communication.
5. Pay attention on the person around your clients, and understand who has the ability to influence the final decision.
6. Show your respect and willingness to listen.
7. Show your professionalism by your name card, your paper work handed to your clients.
Chinese Domestic Steel Market Will Continue to Decline in November.
The domestic market in October
The overall domestic steel market in China has declined weakly in October, so does the market price. The market demand has stagnant during the Chinese National Holiday in October, however, the production capacity has maintained in normal. After the Chinese National Holiday, the market needs and supply still maintained in a unbalanced level.
The domestic market in November
In November, the north of China will gradually into the construction season, the market demand will be more sluggish. Most of steel products will be provided in the Southern Chinese Market. In November, Platts Index has probed to $ 45 -50 again. Continued weakness in the manufacturing PMI and PPI continued to decline. The economy is facing structural deflationary pressures, despite the recent approval of the steady growth of centralized projects, but in the case of project funds are not in place does not show the actual results. Therefore, in November, the steel market will continue to decline in China.
The reason that influence the steel market downturn.
1. The macroeconomic downturn, the market demand into the off-season.
2. Loose monetary policy continues lead to difficult industrial financing.
3. Steel supply over demand, it is very difficult for manufacturers to cut the production capacity immediately.
4. The manufacturers gained pressured from the in stock steel products.
5. Steel industrial trade deficit has increased. The manufacturers has a strong willingness to increase the market price.
The overall domestic steel market in China has declined weakly in October, so does the market price. The market demand has stagnant during the Chinese National Holiday in October, however, the production capacity has maintained in normal. After the Chinese National Holiday, the market needs and supply still maintained in a unbalanced level.
The domestic market in November
In November, the north of China will gradually into the construction season, the market demand will be more sluggish. Most of steel products will be provided in the Southern Chinese Market. In November, Platts Index has probed to $ 45 -50 again. Continued weakness in the manufacturing PMI and PPI continued to decline. The economy is facing structural deflationary pressures, despite the recent approval of the steady growth of centralized projects, but in the case of project funds are not in place does not show the actual results. Therefore, in November, the steel market will continue to decline in China.
The reason that influence the steel market downturn.
1. The macroeconomic downturn, the market demand into the off-season.
2. Loose monetary policy continues lead to difficult industrial financing.
3. Steel supply over demand, it is very difficult for manufacturers to cut the production capacity immediately.
4. The manufacturers gained pressured from the in stock steel products.
5. Steel industrial trade deficit has increased. The manufacturers has a strong willingness to increase the market price.
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