Half Year Sales Work Conference of Domestic Sales Department in 2017 was held successfully
Despite of the burning hot summer, all the sales elites from Domestic Sales Department returned PRCO headquarter to participate the semiannual work conference of the Iron and Steel Department and the Domestic Sales Department on July 24th. The board chairman, Mr. Baikuan Liu, and the CEO Mr. Daoming Shi, the executive vice president of the company, Mr. Zhiming Yi, the deputy general manager of Iron and Steel Department, Mr. Lianbing Liu and other relevant leaders attended the conference. Other responsible persons from production bases, regional managers, project managers, business managers and the related product managers also attended the conference.
With the endless efforts of all the staff of Domestic Sales Department, three indicators, sales, profits and payment collection in the first half of 2017 have been fully achieved in accordance with the plan. A certain breakthrough has been made in the payment collection and the monthly rate of return hit a record high.
Since April this year, due to the strict implementation of the national environmental protection measures and the reorganization and integration ordered by the local government towards the magnesia production enterprises, the prices of the northeastern magnesia raw materials have showed a soaring situation, different from the previous slow rate of rise a few months ago, the current rise trend is still going on. Compared with the fourth quarter of last year, at present, the lowest rise rate have reached more than 80% at least, and the highest rise rate have reached 200%-300%. Now, the supply is very tight and cash must be paid in advance to get the raw materials. The raw material market has entered into the complete sellers’market. At the same time, the aluminum raw materials and graphite and other main raw materials used in the refractory products also face a huge rise in prices. In the case of the above irresistible policy factors, as the downstream company of the refractory products and the steel industry supplier, the production costs of the refractory products in our company increased significantly, bringing about operating under great pressure. The profit indicators of this year face great uncertainty.
Due to the above uncontrollable factors, in line with the principles of equal consultation and long-term mutual benefit, the domestic marketing department has communicated with customers about the sales prices rise since April this year, and most customers can understand and support us. But the current prices of the raw materials are still rising, expected to have no signs of mitigation before October, and therefore what we have done for communication with customers about prices rise is not enough. As a result of the steel prices rising sharply this year, the benefits of the steel industry were significantly better than that in the previous two years. At present, we have known that 21 listed steel companies reported more than expected in the first half of this year, which provides us with the favorable conditions for prices rise.
Therefore, promoting the prices is still the primary work in the second half of this year, this requires the business managers to focus on the supply and demand trend of the magnesia raw materials and convey that to customers. By communication with customers about the current raw material market and the real situation, we need to change the concept held by the customers that the prices always fall and can’t rise. As for the customers who have not yet shown the support for prices rise, we need to do efforts to communicate with them, and as for the customers who have presented the low rate of prices rise, we need to promote the second round of rising. Under the circumstance of the current prices of raw materials rising rapidly and constantly, a lot of adjustment measures need to be prepared for prices rise. Data collection needs to be prepared before communicating with the customers, and we should be meticulous and patient during the process. With the increasingly tight supply of raw materials market, our company will guarantee the stable supply to the customers who support the prices rise in a high rate.
In order to deal with the sharp rise in raw materials prices, the domestic marketing department will further adjust the structure of customers in addition to promoting sales prices. We have the right to abandon the cooperation with the customers who bring us the losses or bad payment collection, and consider reducing or even gradually withdrawing the supply share for the customers who still reject prices rise through communicating several times. We need to focus on enhancing the market share of high-quality customers. The domestic marketing department will do the internal tapping of the project, cooperating with the technology and kiln engineering, and the company will continue to improve the efficiency of management so as to cope with the current difficult situation.
We believe that, with the efforts of all sales staff, with the support of our customers and the cooperation of the various departments of our company, the domestic marketing department will make great contribution to the company's sustainable development.
(Yin Zhaohua)
