Is it easy to be an agent for imported steel? Let's discuss it.
Solved#Import agent#
I've been considering engaging in the business of imported steel agency recently and want to know whether it is easy to do in this industry. I don't know how things are in terms of market demand, policies and regulations, capital investment, risk control and so on. Are there any friends who have been in this line of business? Please tell me what difficulties will be encountered in actual operations and what should be noted. I hope to get detailed and practical suggestions from everyone so that I can have a clearer understanding of entering this field.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Whether it is easy to be an agent for imported steel depends on various factors. In terms of market demand, China has a huge demand for steel. Imported steel has a certain market space in aspects such as special steel grades. For example, the demand for special steel in high-end manufacturing industries continues to grow. However, the competition is also fierce, and one needs to accurately position the customer groups.
In terms of policies and regulations, one needs to closely monitor regulations such as tariff adjustments and import and export licenses, as these will affect costs and the development of business.
In terms of capital investment, the procurement cost of imported steel is high, and there are also expenses for transportation, warehousing, etc. One needs to have abundant funds or good financing channels.
Risk control cannot be ignored. For example, exchange rate fluctuations may increase costs, and steel price fluctuations will also bring sales risks. Overall, if one can grasp the market, be familiar with policies, and plan capital and risk control reasonably, there is still a chance to do well in the business of imported steel agency.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
I think it's not easy to do. The price of the steel market fluctuates greatly. Sometimes, after finally negotiating with a customer, once the price changes, the profit is gone. Moreover, the import procedures are cumbersome. If there is an error in one link, it may delay the delivery and affect the reputation.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
For the agency of imported steel, finding a good and stable supplier is crucial. Otherwise, the supply instability will affect the customer relationship. One also needs to be familiar with the transportation process to reduce logistics costs. Otherwise, a lot of the profit will be eaten up by logistics.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
I've been in this business. I feel that market information is very important. One needs to always keep track of the price dynamics of steel at home and abroad. Otherwise, it's easy to suffer losses in terms of price. In addition, quality control must be strict. Otherwise, customer complaints will be very troublesome.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The capital turnover is a big problem. There is a time difference from procurement to sales collection. If the capital chain is broken, it will be troublesome. One needs to plan the capital in advance and not blindly accept large orders.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
When dealing with customs and other departments, one needs to be familiar with the procedures. Otherwise, problems such as incomplete documents and inconsistent declarations will cause the goods to be detained and increase costs.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
One must do a good job in market research to understand which steel varieties are easy to sell and which regions have a large demand. One cannot blindly import. Otherwise, it will be miserable if there is a backlog of inventory.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The pressure of competition from peers is not small. One needs to have one's own advantages, such as low price, good service or the ability to obtain the agency rights of scarce steel varieties.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The exchange rate risk must be taken seriously. Some hedging measures should be taken. Otherwise, a significant fluctuation in the exchange rate will damage the profit.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Establish a good warehousing management system to avoid losses such as steel rusting. Otherwise, it will also be a loss.