Downstream demand for cold-drawn stainless steel pipes began to weaken, and business sales declined slightly

International cold-drawn stainless steel pipe enterprises have reduced production, and there is a wave of layoffs. If the production reduction is a means of short-term response to the epidemic, then the layoffs are strategic adjustments, and the layoffs wave reflects the long-term trend of cold-drawn stainless steel enterprises to a certain extent. Later, the impact of international steel production cuts on iron ore demand will gradually emerge, China’s annual cold-drawn stainless steel pipe demand is expected to decline, iron ore demand will also fall. Regardless of the impact of special events, with the increase in iron ore supply and the decline in consumption, the profit of the industrial chain is expected to tilt to the steel mill end. In this context, while closely tracking downstream demand changes, the cold-drawn stainless steel pipe industry should also look for profits upstream, and promote iron ore prices to reflect the real relationship between supply and demand by establishing a more reasonable pricing mechanism. Baowu Group first step, the recent announcement of Chongqing Steel said that it intends to participate in the establishment of Baowu raw material procurement Services Co., LTD. In the tug-of-war between miners and steel enterprises for iron ore pricing rights, the position of Chinese steel enterprises is moving forward. In 2019, Baowu Group’s crude steel production ranks first in the world, and it has also become the largest buyer of iron ore in the world. By building a unified raw material resource sharing platform, Baowu has centralized the decentralized procurement of its companies. On the one hand, improve efficiency in risk control, logistics and other aspects, on the other hand, improve the right to pricing. In the long run, China’s cold-drawn stainless steel pipe industry attaches importance to the construction of the supply security system of global resources of iron ore and makes up for the lack of domestic resource endowments. At the same time, as the largest buyer of the global iron ore market, further promote RMB pricing and settlement, establish an iron ore spot trading center, and increase the influence of China’s iron ore price index. The core feature of Internet + is the efficiency of information transmission, which changes people’s lives from the top down. Specifically, the Internet has subverted business channels, traditional enterprises have been affected, and the rise of e-commerce platforms has enabled consumers to buy products at more affordable prices and deliver them to their homes, saving shopping time. At the same time, in the Internet era, channels are simply flattened, manufacturers direct power suppliers, and e-commerce will sell products to consumers, and product prices can be significantly reduced. With the help of search engines, not only is display space no longer scarce, but also consumers can complete purchases more quickly and affordably, and even the application of new technologies will bring users unprecedented experience and feelings.