Xu Lejiang: Baosteel intends to use the "Internet +" to break through the loss of the whole industry

"Two years ago, I said here that the steel industry has entered the late autumn, and now the cold is coming." At the 10th China Steel Annual Meeting and the 6th Baosteel Academic Annual Meeting, Xu Lejiang, Chairman of Baosteel Group, revealed that from January to August this year. The domestic steel industry once again suffered losses in the whole industry, and the losses of large and medium-sized steel enterprises reached 18 billion yuan.

Internet + steel response to winter

The steel industry has entered a severe winter, as can be seen from demand and steel prices. From January to August, the apparent consumption of steel fell by 5.2% year-on-year, and the price also fell to the bottom. In August, the overall price of domestic steel fell by 30% year-on-year, almost back to 1994, and the decline in the price of minerals was not as good as the price of steel. Naturally, it is difficult to make money.

"Now the bank has tightened the funds in this industry, but because the production capacity is still too large, the whole industry has once again suffered losses." Xu Lejiang revealed that in the first eight months of this year, the total profit of large and medium-sized steel enterprises nationwide lost 18 billion yuan, compared with the same period last year. There are 14.6 billion yuan in profits.

It is worth noting that as steel prices continue to fall, China's crude steel output fell for the first time in nearly two decades this year. Steel production in the first nine months was 608.9 million tons, down 2.1% from the same period last year.

"The price war will not move. Some people will gradually withdraw from the competition, and the excess capacity will gradually be eliminated. This is the price that the steel industry must pay for the transformation and restructuring." Xu Lejiang pointed out that although Baosteel has basically formed its size and layout in China. However, in view of the opening of a new round of integration window in the industry caused by the severe market situation in the steel industry, Baosteel will not rule out the opportunity to seek industry consolidation in the future.

Since the steel industry has entered the winter, how far is the spring coming? Xu Lejiang believes that the Internet can provide opportunities and ways for the transformation of the steel industry.

"China's steel industry has just turned to user-oriented, the Internet can clarify the relationship between supply and demand, which is conducive to the promotion of organizational efficiency by steel companies, thereby improving the efficiency of resource allocation." Xu Lejiang believes that the current steel companies sales, research and development, production, extension processing And the service system, intelligent logistics and other aspects must be transformed to adapt to changes in user needs. Connect the different R&D, production, sales, logistics, and different endpoints of manufacturers, users, suppliers, and collaborative manufacturers and service providers through technologies such as the Internet, the Internet of Things, and cloud computing (end-to-end connections) ), forming a complete information physical system (CPS).

To this end, Baosteel put forward the strategy of “one body and two wings”, that is, the main body is steel and materials, and the two wings are steel service platforms based on Internet, cloud computing and big data, and steel manufacturing based on the original manufacturing base. platform.

Ouye e-commerce breakout

The Ouye Yunshang, which was established in February this year and has a registered capital of 2 billion yuan, has become an important measure for Baosteel to implement the “one body and two wings” strategy.

Compared with the steel and silver and the steel mesh that have already achieved a certain scale, the start of the Ouye Yunshang is not too early, but as early as 15 years ago, Baosteel established the “Oriental Steel Network”, but Xu Lejiang believes that “for 15 years, we have The effect of '1+1>2' has not been realized, and the key reason is that in the past it was only a simple addition to the traditional Internet."

Ouye Yunshang does not want to simply move Baosteel's products online, but hopes to create a third-party public service platform open to the Chinese steel industry, and completely trades and services the products to the whole industry including competitors. All steel companies are open.

Of course, it is not easy to do this. Compared with steel and silver, steel grid and other platforms, Baosteel is also a steel producer. Why should competitors hang their products on the platform of Baosteel? For this reason, Chen Derong, general manager of Baosteel Group, personally led a team to visit WISCO and Shougang. Brothers such as Hegang and Minmetals invited their peers to participate in the construction of Ouye. The name of the e-commerce platform was named “Ouye”, which was also to dilute the traces of “Baosteel”.

"In the future, the equity of Ouye Yunshang will also be open to the public. Baosteel can even give up its controlling stake. The operating model I think can be similar to the 'Asian Investment Bank'." Xu Lejiang told reporters that at present, Ouye Yunshang is owned by Baosteel Co., Ltd. (5.86, 0.06, 1.03%) And Baosteel Group held 51% and 49% respectively.

According to the latest data obtained by the reporter, the number of registered users of the Ouye E-commerce platform exceeds 42,000 (households), and the daily cargo volume exceeds 1.2 million tons. The average daily trading volume (settlement volume) of the platform exceeds 50,000 tons. In the whole year, the transaction settlement amount can reach 8 million tons or more, and it is expected to reach 10 million tons, compared with 4.3 million tons in 2014.

A person from Ouye Yunshang told reporters that more than 80% of the steel products currently traded on the Ouye E-commerce platform are not Baosteel's own steel products, including major steel mills such as Shougang, Wuhan Iron and Steel, Anshan Iron and Steel, Maanshan Iron and Steel Co., Ltd. On the sale, after all, in the current market, who can help the steel mill sell well, and whose platform is more popular.

However, due to the fact that the current trading transactions of the Ouye E-commerce platform are free, Ouye Yunshang is naturally at a stage where investment is greater than output. In the future, with the expansion of transaction volume and users, there is a possibility of generating revenue in logistics, service and finance. .

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