Wuxi stainless Steel to help SMM& Hiro Strategy meeting

SMM5, 30 March-Wuxi stainless steel is a new commodity trading venue developed on the basis of the traditional commodity market, focusing on expanding upstream and downstream of the industrial chain to achieve commercial integration and provide comprehensive integrated services. The formation of industrial coordination, supply and marketing matching, comprehensive services of the commodity industry Internet platform.

Operation and management

Wuxi stainless Steel Electronic Trading Center Co., Ltd. (referred to as "Wuxi stainless Steel") was established on the basis of Wuxi Southern stainless Steel Market, one of the largest stainless steel spot markets in China, and was approved by the Wuxi Development and Reform Commission. The Jiangsu Provincial Development and Reform Commission allocated support funds, which was established in October 2006 and was named "Top 500 National Private Enterprises" of the all-China Federation of Industry and Commerce and "Top 100 Enterprises of China Internet" by the Ministry of Industry and Information Technology in 2018.

Won the honor: has won the Ministry of Commerce 10 billion key contact market, Pilot project of e-commerce integration and innovation of the Ministry of Industry and Information Technology, special support for the transformation and upgrading of Jiangsu industry and information industry, e-commerce demonstration enterprises in Jiangsu Province from 2017 to 2018, key demonstration projects for the construction of intelligent Jiangsu Province, There are dozens of honors at the national, provincial and municipal levels, such as the key enterprises of the "$10 million Project" of the Internet platform economy in Jiangsu Province, and the special fund projects for the development of business at the provincial level in Jiangsu Province.

Description of the service real economy

In the past 13 years since its operation, Wuxi stainless steel has always persisted in serving the real economy, accumulating nearly 30,000 industry customers and all large stainless steel production plants in China. More than 60% of stainless steel and electrolytic nickel small and medium-sized trading and processing enterprises, as well as central enterprises, state-owned enterprises, international well-known commodity enterprises are actively involved in the transaction.

Wuxi stainless steel platform in all previous commodity transactions, settlement business has not occurred any default, no financial risk events, known as the new era of e-commerce platform innovation model.

Business scale: Wuxi stainless steel is the world's largest spot electronic trading market for nickel, cobalt, indium and stainless steel. Wuxi stainless steel since its inception of the four main trading varieties: stainless steel, nickel, indium, cobalt, physical settlement scale of more than 2.5 million tons (about 110 billion yuan). In 2018, the amount of physical settlement in the market was 20 billion yuan (699300 tons). The volume of stainless steel goods delivered through Wuxi stainless steel platform accounted for more than 10 per cent of the domestic consumption, and the delivery volume of electrolytic nickel, cobalt and indium accounted for more than 40 per cent of the domestic consumption.

Price influence: Wuxi stainless steel platform price has become the pricing basis of domestic electrolytic nickel and cobalt, and the spot market has formed a trade model based on Wuxi stainless steel platform price. Wuxi stainless steel platform trading prices are collected by CCTV Financial Channel, Thomson Road, the Hong Kong Stock Exchange, the Chicago Mercantile Exchange plans to increase the Wuxi stainless steel platform price as the settlement price of nickel and cobalt index contracts.

Scope of services: Wuxi stainless steel industry customers cover 32 provinces and cities, 2 special administrative regions, in 4 major trade distribution areas set up a total of 26 settlement warehouses, settlement storage capacity of about 1 million square meters, Provide public inventory for all industrial customers, and cooperate with more than 50 logistics and distribution enterprises throughout the country. Wuxi stainless steel provides upstream and downstream customers with integrated supply chain services such as trading, settlement, warehousing, quality inspection, financing, information and big data services. In the area of financial services, cooperation with CITIC Bank has provided financing services with a total amount of 500 million yuan to 20 enterprises.

Promoting industrial integration: Wuxi stainless steel has changed the traditional mode of trade circulation and established a closer cooperative relationship with industrial customers through comprehensive service provision and ecosphere building. The development model of the trading center has also changed from promoting transactions to providing integrated supply chain solutions for customers in industrial integration. Wuxi stainless steel service upstream industry customers mainly include Jinchuan Group, Xinxin Mining, as well as Taiyuan Iron and Steel, Beihai Chengde, Hongwang Group, Qingshan Group, Posco, Dongfang Special Steel and other stainless steel and non-ferrous metal production enterprises; Downstream enterprises: Suber, Meidi, Haier, Little Swan, Haimen Sunda, Weifu Group and many other industries leading enterprises.

Wuxi stainless steel provides customers with personalized solutions through benchmark price + premium water quotation, spot price, monthly average price, centralized purchasing, shared inventory and big data optimization scheme. At the same time, the circulation inventory will be concentrated to the trading center designated settlement warehouse, steel mills and processing enterprises on demand, raw materials close to zero inventory; Analyze the customer logistics line, optimize and integrate the overall process of production, processing and consumption, and promote the upgrading of the upstream and downstream production organization of the industrial chain.

Industrial agglomeration: Wuxi stainless steel has built Shuofang stainless steel logistics park, Shandong Zibo northern stainless steel market, Foshan metal processing center, Qingdao processing center, Wuxi southern stainless steel market, Wuxi Lianhua Nonferrous Metals Market and other stainless steel logistics processing industry park, Promote the deep integration of circulation, production, processing and consumption.

Due to the perfect service function of Wuxi stainless steel platform, Shuofang stainless Steel Park, where the platform is located, has attracted all domestic stainless steel factories to set up branches in the park. Through the platform to achieve its raw material procurement, on-demand production, product sales, product processing and after-sales service and other functions. The gathering of steel mills has further attracted more funds and goods from the stainless steel industry. Wuxi Shuofang stainless Steel Logistics Park has become the largest stainless steel industry cluster in China, providing integrated services such as trading, warehousing, settlement, shearing, processing and distribution for stainless steel and metal industry enterprises throughout the country. And led Wuxi area to form the largest stainless steel industry distribution center in the country.