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Trading of Construction Materials

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 Analysis of steel trade industry

China is a steel production and circulation partner of other countries. Ranked first in the world for the production of crude steel for 13 consecutive years. In 2008, China's production of crude steel was 68.38 million tons, an increase of 7.3%. Sub-species to see, driven by higher growth in investment, mainly to the construction of timber-based long material increased. While the machinery, automobile, shipbuilding and other industries slowed down growth, demand for production growth is limited, the proportion of plate. 2011 long products, sheet production were 400 million tons and 390 million tons, up 15% over the previous year and 8.6%, accounting for the proportion of total steel were 45.7% and 44.2%, respectively, over the same period last year increased by 1.1 Percentage points and a decrease of 1.5 percentage points.

At present, the main way of circulation of steel in China is still direct supply and distribution. From China's reform and opening up, China's steel trade has been developed by leaps and bounds, a large number of steel trading enterprises, individual traders began to rise rapidly.

Other building materials industry

In the macroeconomic trend to the good, driven by China's building materials industry to achieve rapid growth. 2010 began to energy-saving, emission reduction and elimination of backward production capacity policy significantly. In 2011, the domestic environment further improved, investment growth inertia, infrastructure investment and building materials to the countryside, the new rural construction continues to advance, will increase the demand for building materials. At the same time, there are contradictions and problems in the operation of the industry, such as increasing cost pressures, downstream demand reduction and export slowdown. In view of this, the total supply of domestic building materials is sufficient, it is expected in 2012 building materials industry will continue to maintain a stable production and sales, rapid growth momentum, industrial added value increased by 15% or more. The main product output continues to grow, is expected in 2012 cement production growth is expected to drop to less than 10%, flat glass production growth is expected to drop to about 10%. But with a number of new construction projects put into operation, flat glass and other products overcapacity fear will intensify.

Related policy impact

Companies as building materials trade enterprises, business will be the downstream industry - the real estate industry will have a greater impact. 2011 Central for the purpose of curb housing prices, increased for the real estate industry regulation and control policies. There are a series of measures to improve the housing loan threshold, real estate tax collection, affordable housing construction plan, limit real estate enterprise loan financing, limit price and so on. By the beginning of 2012, the policy control was introduced to lead to the domestic first-tier cities housing prices have dropped significantly, second and third tier cities out of the situation.

In March 2012 after the two sessions, Premier Wen Jiabao's speech clearly mentioned in 2012 on the real estate industry to suppress the policy, measures will continue, the central control will not shake. Can be expected in 2012 the real estate market will remain in a tightly controlled situation, the domestic real estate industry over development situation will not appear again.

Affected by this, steel and cement as the representative of the building materials market, although driven by the state investment will continue to grow, but the growth rate will be synchronized with the trend of slowing domestic economic growth, affected by the industry downturn, building materials industry backward production capacity Excess situation will gradually appear, building materials industry oversupply, building materials prices tend to be stable.

Enterprises in the industry's competitiveness

The company is mainly engaged in construction projects, mainly building trade. At present, domestic building materials sales enterprises are mainly divided into: production-oriented enterprises and market sales-oriented enterprises. The former is in the industry upstream production link, is the main promoter of the Industry. Market and sales enterprises mainly for the building materials market operators and building materials vendors, in the middle and lower reaches of the industry circulation, its business mainly rely on the professional market, building materials dealers are often specialized in a commodity or a use of building materials varieties of sales. Due to the diversification of building materials, building materials products can be alternative and market information transparency are strong, the industry has more intense competition. It is difficult to form a monopoly in a category and regional market.

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