With the adjustment of the national macro policy, China's seamless steel pipe trade industry profits from January to May this year decreased by 56.9%, large and medium-sized seamless steel pipe enterprises in July net loss of 1.984 billion yuan, in August, the whole industry faced losses. Many problems existing in the traditional seamless steel pipe trade market are gradually exposed: Due to lack of tube structure, transmission fluid pipe, fine machining of low and medium pressure boiler tube industry structure of China's tube, pipe conveying fluid, low medium pressure boiler pipe production enterprises and the structure, transmission fluid pipe, low medium pressure boiler tube needs severe unequal information between businesses, huge profits by countries such as America, Japan and middle tube structure, transmission fluid pipe, low medium pressure boiler tube fine processing enterprises, Chinese seamless steel pipe enterprises only rely on rough processing to earn a small profit; China's traditional steel trading adopts a simple "one buy, one sell" model, which makes it difficult to effectively connect supply and demand markets. Enterprises often have to spend a lot of material resources and manpower to find effective customers. In the aspect of structure pipe, conveying fluid pipe, low and medium pressure boiler pipe logistics, the traditional storage, distribution and transportation process, due to the backward management mode, there are also problems such as unable to effectively monitor the transportation process, low customer satisfaction and high logistics cost.

Business model change: to the upstream extension, with fine processing to enhance the added value of products

"The key difference is that China lacks specialized fine processing technology for structural pipes, conveying fluid pipes and low and medium pressure boiler pipes." There are many seamless steel pipe processing enterprises abroad, their main business is to do fine processing, the steel and other metal raw materials into high-quality seamless steel pipe, so as to provide downstream users to buy and use.

Drawing lessons from the development model of foreign steel industry, the company has introduced fine processing projects and established a specialized metal processing center. At present, it mainly focuses on steel plate development. In the future, there will be processing project companies of steel bar and building materials settling in successively.

Change of transaction mode: from traditional trade to integrated operation of e-commerce financial services

"The e-commerce model can not only bring more buyers and sellers together to create a" never-ending "trading market, but also reduce the time for buyers and sellers to find each other, improve transaction efficiency, and connect the demand for buying and selling directly." . In the e-commerce mode, seamless steel pipe traders can get steel from the steel mill, according to customer demand in rough or fine processing, and the need to sell the finished products on the e-commerce trading platform to display and trade. When there is customer demand, customers can order, place orders and online transactions on the e-commerce platform, and then steel traders will arrange logistics for direct distribution.

"The e-commerce platform gathers a large number of buyers and sellers. Traders don't have to worry about where to find customers, and buyers don't have to worry about where to find manufacturers. Buyers and sellers from all over the world can trade on this platform, shortening the transaction time for both parties." The United States, according to statistics from the third party of seamless steel tube network trade volume accounted for 50% of overall, China's current steel trade at least 5 trillion yuan a year, having the ability of operating seamless steel tube trade enterprises reached more than 30 m, which accounts for only 5% of the total steel trade network in our country, the domestic seamless steel tube electronic trading contains a huge market opportunity.