Steel warehousing companies suffered heavy losses in their integrity

“The partial dishonest behavior of the steel trade warehousing companies has brought great impact. The integrity of the entire industry needs to be reconstructed.” The relevant personage of the Shanghai Industrial and Commercial Steel Trade and Commerce Association said on the 21st.

On the same day, the first industry self-regulatory organization in the domestic steel storage industry, the “Shanghai Steel Storage Integrity Alliance” was formally established. At the same time, it established a warehousing information disclosure platform. Nearly 40% of steel stocks in Shanghai have entered, and it is intended to form an open supervision of industry integrity. platform.

Business model "loopholes" must be blocked last year, the domestic steel trade industry crisis. According to incomplete statistics, there have been hundreds of credit cases in the field of steel warehousing, including “repeated pledges, empty single pledges”, which have severely disrupted the normal market order and severely depressed the integrity of steel storage companies, giving them a market for bulk commodities. And the financial system has caused a greater impact.

Ji Mingyong, deputy general manager of Baoshan Shengqiao Metal Processing Factory, said that in recent years, the rapid development of the domestic steel trade industry, and the inability to keep up with the infrastructure construction of the industry system, has caused loopholes and hidden dangers in the process of integration with financial innovation. Some unscrupulous companies and non-standard enterprises drill these loopholes.

A person from the Shanghai Federation of Industry and Commerce Steel Trade and Commerce said that in terms of the Shanghai area alone, there are more than 200 steel trade warehousing companies, of which more than 20 have untrustworthy behavior. The impact of these actions on the industry is too great. “The result is that the credibility of the entire industry is affected.” For the steel trade and steel trade and warehousing industry, it is certainly a “dead path” for vicious low-price competition and false business operations.

The steel trade industry needs to adjust its development direction. The steel trade industry is facing a “shuffle” situation. The next step is how to break through and it is of concern.

Industry analysts said that steel trade is a capital-intensive industry, companies need to pay the full amount in the procurement delivery phase, and need to be funded in the sales cycle, so ** is a key link. The next step in the development of the steel trade industry is also inseparable from the financial innovation. But the premise is that the steel trade industry must be regulated, subject to effective supervision, and establish a new business ethics system.

Liu Min of the Shanghai Municipal Commission of Commerce stated that basic management, service, and financial innovation should form a complete, interactive, and effective whole. The steel trade industry must adjust the direction of development and use “transparency, information, visualization, and intelligence. "New technologies, new ideas and new systems to improve business models.

Some steel traders and warehousing operators said that after this impact, the industry’s “integrity violations and losses” have been “realized for everyone”. The steel trade business model must be transformed and improved.

An open and transparent platform for “Who owns goods and how much goods” At the beginning of the steel trade and steel trade warehousing crisis, the industry realized that reshaping the industry’s integrity and making the basic information transparent and transparent is the “foundation basis”.

The first self-discipline “integrity alliance” established in China this time, the first thing to start is to build a public publishing platform for information. Zhu Junhong, chairman of Shanghai Steel Union, one of the initiators, introduced that the alliance will successively formulate warehousing industry evaluation standards, industry service standards and industry management standards, and in the form of “joint self-discipline”, disclose the stock and pledge of member warehousing companies to the whole society. Such data, and vigorously improve the transparency of the members of the warehousing company's own information, "to eliminate the past because the information is not open and create a repeat of the mortgage crisis of the soil", to provide banks and regulatory agencies to provide regulatory channels, with a view to re-establish the integrity of the industry.

Another initiator of the Shanghai Chamber of Commerce and Industry Association of Steel Merchants Association of Warehousing Professionals said that the Union's member warehousing companies must regularly enter the actual steel storage data, the public, warehousing customers, banks, regulatory authorities can see these warehouses at any time The data “forms mutual supervision, control and supervision mechanisms”.

It is reported that member companies must also accept the Union Council's regular inventory inspections and irregular regulatory audits. Once the member warehousing company is in violation of regulations, the alliance will take public criticism, delisting and other penalties. If the case is serious, it will report to the government supervisory department. At present, 10 steel storage companies in Shanghai have signed up to join the alliance, and their steel stocks account for 36% of Shanghai's total.

“This is an exploration. There are two possible extensions in the future: First, it will extend to the national market; First, it will extend to a wider business and trade system and establish an industry credit guarantee system,” said Zhu Junhong.