Roller Coaster-style steel prices do not overreact

Recently, in the face of several rounds of the steel market soaring and falling, especially the plywood in the profile, the plunge has skyrocketed, causing the profitable list to eventually become a tasteless. If you follow the trend of rising and rising, it will affect the company's reputation. If you sign a contract based on the quotation, don't say zero profit, lose money is a certain amount, and learn the ability of rational management in the gap between the fluctuation of steel.

Impulse is the devil and does not make decisions when it is impulsive. Iron and steel companies and traders have long-standing entrenched impulses that are entrenched and difficult to overcome. They have also been praised as "quick response." The rapid reaction itself is not a disease. Over-reacting is a disease. When the “degree” is too large, it becomes a psychological and behavioral impulse. It will produce a devil-like crazy speculative psychology. The recent skyrocketing price of steel has this characteristic. Traders and terminal manufacturers are usually cash on delivery and occasionally default on payment. A few days ago, plywood slabs were unloaded at the yard by half. Traders have to increase prices. The original price of the unloaded car is still increasing in price per ton in the car. In the most intense times, prices are adjusted several times a day.

Small wins rely on wisdom, victory, Manuer rail parts factory to follow the entrepreneurial spirit, market trading and trading is not a big deal, is a moral restraint, overreacting easily become profiteers. In the recent wave of price increases, a steel trader suffered a loss this time. In early March, he learned about the soaring steel prices and thought that the opportunity had finally arrived at a large quantity of steel blanks for the production of splints. The customers have all raised their prices, but the customers do not buy it and they take a wait-and-see attitude. A few days later the steel price oscillated and the customers turned to other companies for lower prices. The steel traders can not afford to hand the steel, not only did not earn money but also offended a group of customers, so that price increases have become a ridiculous farce, but fortunately late steel prices once again rise, seek grandma grandfather downstream customers to help deal with it, shocked one Cold sweat.

The German is the real winner. The real winner of the market economy is a wise and ethical person who does not engage in impulsive operations and does not act recklessly. Iron and steel production companies and distribution companies must learn to unwind from impulse management and upgrade themselves to be good at brains and ideas. Rational managers can overcome weaknesses and win against weaknesses.