Since this year, in the face of growing market competition of the domestic steel industry and the pressure on tight financial condition, Xingtai Steel who have stable domestic customers began to look more opportunities in international market that is considered have more development potential.
Solid foundation and optimized process.
In order to develop and expand international market, the sales department of Xingtai Steel has changed export business model and adjusted personnel arrangement. Since the second half of 2013, customer managers was specialized in order taking and pay more attention to market development and customer care and they do not in charge of contract performance any more. At the same time, Xingtai Steel built a professional contract execution team through training and study for their export employee which has achieved professional work and efficient process. In September of this year, Xingtai Steel exported 20,000 tons of wire rods and 10,000 tons of square steel grades. To compare with the data of one year ago, the export quantity is only about 8000 tons each month. The total export quantity of Xingtai Steel has reached 140,000 tons from January to September. It’s expected that the annual export capacity will reach to 200,000 tons of wire rods and also many other products with different grades in a new pattern by the end of the year.
Channel Maintenance and key development.
Xingtai Steel consolidate the original sales channels based on regular customer orders and make a full range of market expansion, including the key breakthrough for sales area, market development and product category.
Sales area: regain Indian market.
Indian customers almost stopped purchasing steel products from Xingtai Steel because of their own currency devaluation in 2012. With the reduction of cost, Xingtai Steel actively contact the original customers to recover Indian market which has been gradually showing the recovery since May and June of this year. It is expected to achieve 3000 tons of the monthly sales by the end of this year.
Steel grade development:Development of ingot iron in Korea market.
Xingtai Steel successfully got part of orders for igot iron through promoting the communication with Korean customers and development in Korea market. After trial orders, the approval for this product by end-users is very high. It is expected to achieve 800 tons of the monthly sales by the end of this year.
Product range: square steel exports.
Xingtai Steel achieve 10,000 tons of export quantity for square steel in September by taking full advantage of bloom breakdown mills. It will be gradually increased in future so as to realize the new breakthrough of product category.
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