Recently, one customer from Fujian wants to order a batch of stainless steel products. Before signning the contract, a lot of request raised such as better cold heading performance, smooth wire surface without defect etc. For such a situation, the vice manager of sales department Mr. Liu has been regarded as normal. Because, according to the special requirements of customers, Xingtai Steel has greatly shorten the R&D term to 3 days now instead of 1 to 3 months before. At present, the ordering production without inventory is realized in Xingtai Steel
The change come from the deepen judgment to the present market situation. In the view of Mr. Yuan Xixian, the Chairman & General Manager of Xingtai Steel, it is more suitable to pay more attention to the diversification of user demand to develop marketable products, to dominate and lead the market in the earliest time, rather than to rely too much on price.
Based on this idea, in recent years, according to customer requirements for quality, performance, cost and so on, Xingtai Steel initiatively provide integrated solutions and increase customized production to meet the high quality, low cost and personalized new market demand. One industry chain leading company in Tianjin has strict requirements on the material quality especially in the hardness of the purchasing wire rod. Many steel companies unable to sign orders for their hardness. Xinxiang CHQ wire rod plant of Xingtai Steel stepped up technology R&D and soon passed the trial order of that enterprise. We got the new product order for meeting that company's wire hardness requirements.
The customer demand is the top instruction and working around the market, which lead the products of Xingtai Steel to the high-end market. For example, high-end automotive steel has been the focus of the iron and steel enterprise competition. Currently, all the raw material used by Beijing Singu Keller automotive cold forming company controlled by Xingtai Steel supplied from Xingtai steel. Its products have been used in Volkswagen, BMW, Benz, Audi and Toyota cars. At present, the company already has 80 million automobile cold forming parts, 70 million kilometers cutting wire, 200 thousand tons of welded wire mesh, 100 thousand tons of CHQ wire and 50 thousand tons of annual production capacity of fasteners. The related cold forming parts used in joint venture cars and domestic cars in China market reach to 90%.
Wang Ying the chief engineer of Xingtai Steel told writer that the products of the company are all "good player" if calculate on the segment market. But the production volume and the scale of Xingtai Steel is not in the top of steel industry. The market share of 400 series stainless steel used in producing medical apparatus and instruments & electronic board, andthe pure iron used in producing communications, electronics is in the first rank. The market share of bearing steel used in producing bearing roller is in the third rank. At present, the average profit of many steel products is 500 yuan per ton. The market share on high-end product market reach to 58%.
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