On September 12, while the province of Jiangsu was looking at the huge direct economic loss of 1.46 billion yuan brought about by Typhoon No. 15 this year, Wu Xiaoyuan, the general manager of Zhangjiagang and Midea International Trading Co., Ltd., was located in the Zhangjiagang Free Trade Zone. In the chemicals trading market office, several transactions were made as usual. It was also on this day that more than 510 traders like Heme International completed a transaction volume of nearly 100 million yuan here and created a tax of about 5 million yuan.
"When the trading market was established in 2002, there were only 88 customers settled in. The annual turnover was less than 4 billion yuan. This year, from January to July, the transaction volume was 11.6 billion yuan. It is estimated that the annual turnover will exceed 20 billion yuan. The tax revenue is 100 million yuan." Zhou Yaping, the general manager of the market who just won the "China's Most Competitive Chemical Market in 2005," told reporters. In other words, in just three years, the number of customers entering the market has increased by nearly five times, and the transaction volume has increased by more than four times, which has created a miracle for the development of the domestic professional chemical trading market.
The reporter learned from the interview that there are three major support points that helped the chemical trading market in the Zhangjiagang Free Trade Zone create such a miracle.
One of the fulcrum points: Industrial agglomeration triggered huge demand According to Zhou Yaping, at present, Zhangjiagang has established more than 600 chemical companies, including Dow, DuPont, Asahi Kasei, Messel, etc., in Yangzijiang Chemical Industry Park, which is established by relying on the only inland-type bonded area in the country. Fortune 500 and internationally renowned chemical companies have formed numerous integrated chemical industry chains. These companies with huge investment pooled together led to the emergence of a large number of enterprises in the region and abroad that supported and collaborated with their industries, and contributed to the rapid development of downstream industries that used chemical products as raw materials in the region.
“The agglomeration effect of these enterprises and industries has been continuously enlarged, which has accelerated the expansion of demand for the distribution of chemical raw materials and products, providing strong support and inexhaustible motive force for the development of the chemical market in Zhangjiagang,†said Zhou Yaping.
It is precisely because of this industrial agglomeration, coupled with the unique bonded functions of the bonded area, the Zhangjiagang chemical market has been strongly sought after by traders since its inception. Some domestic large-scale chemical product import and export companies and strong chemical production companies across the country have entered the market one after another, making the market's popularity soar. Within three years, it has become China's largest distribution center for liquid bulk chemicals and has played a pivotal role in the spot market for liquid chemicals.
Fulcrum No. 2: The smooth flow of goods to establish a security system A professional chemical market is a huge distribution center for chemical products. Compared with other professional chemical markets in China, the complete logistics system has become a unique fulcrum for the development of Zhangjiagang Chemical Market.
According to Zhou Yaping, Zhangjiagang Chemical Industry Market, one of the Yangtze River Delta Chemical Logistics Centers, has established the goal of safeguarding the smooth flow of enterprises entering the company as an important development goal, and strives to spread the traditional specialty chemical markets through the establishment of a sound security system. The logistics is concentrated to minimize the transaction costs of merchants. At present, the market itself has formed a fully functional logistics system such as chemical storage, transportation deployment, and import and export product storage. With the market as the carrier, a group of professional transportation companies serving the market customers are gathered. Some settled merchants also saw the business opportunities of market logistics, and they invested in and constructed logistics facilities. Zhongrong Logistics Co., Ltd., which used to be the main trader in the market, built a chemical warehouse with an area of ​​38,000 square meters. According to statistics, so far, only dry market warehousing with investment in the market as the mainstay of the company has reached an area of ​​300,000 square meters, and the liquid storage area has exceeded 100,000 square meters, resulting in an annual cargo handling capacity of 1.5 million tons.
The construction of Zhangjiagang Bonded Logistics Park, which is in the same bonded area as the chemical market, creates a stronger chemical logistics guarantee system. At present, 28 third-party logistics companies, including the Dutch company Fubao, have been put into operation in the region with a total investment of 4 billion yuan. Two chemical docks with a capacity of 10,000 tons or more and 450,000 cubic meters of chemical storage tanks have been built, forming a regional chemical logistics center that has begun to take shape.
Fulcrum No. 3: Information Services Creates Price Benchmarks “Our quotation in the market has now become a barometer for the price of chemical markets in major regions of the country.†Zhou Yaping said to reporters with pride.
In the Zhangjiagang Chemical Market Information Center, the person in charge Fei Yu told the reporter that the market had invested nearly RMB 4 million since the establishment of the market to establish the most advanced information service system in the domestic chemical market, with an investment of 400,000 yuan for special software.
According to her introduction, in order to ensure accurate and timely quotation, they established direct contact with foreign professional websites, achieved mutual information sharing, and established contact with famous foreign traders to obtain real-time transaction prices, and even learned in advance Their intention to trade prices. They selected some representative first-hand dealers from within, and obtained real-time transaction prices for each product from them, which were then identified and aggregated and published.
In order to increase the influence of quotation, they cooperate closely with relevant domestic and foreign institutions. At present, in the United States, China, chemcross network, and some well-known domestic websites, users can find the spot price of Zhangjiagang chemical market every day.
“Next, we will strengthen the construction of online transactions, online fund settlement and logistics distribution system, and guide the settled enterprises to take the lead in completing the transition from traditional transactions to e-commerce,†said Zhou Yaping.
"When the trading market was established in 2002, there were only 88 customers settled in. The annual turnover was less than 4 billion yuan. This year, from January to July, the transaction volume was 11.6 billion yuan. It is estimated that the annual turnover will exceed 20 billion yuan. The tax revenue is 100 million yuan." Zhou Yaping, the general manager of the market who just won the "China's Most Competitive Chemical Market in 2005," told reporters. In other words, in just three years, the number of customers entering the market has increased by nearly five times, and the transaction volume has increased by more than four times, which has created a miracle for the development of the domestic professional chemical trading market.
The reporter learned from the interview that there are three major support points that helped the chemical trading market in the Zhangjiagang Free Trade Zone create such a miracle.
One of the fulcrum points: Industrial agglomeration triggered huge demand According to Zhou Yaping, at present, Zhangjiagang has established more than 600 chemical companies, including Dow, DuPont, Asahi Kasei, Messel, etc., in Yangzijiang Chemical Industry Park, which is established by relying on the only inland-type bonded area in the country. Fortune 500 and internationally renowned chemical companies have formed numerous integrated chemical industry chains. These companies with huge investment pooled together led to the emergence of a large number of enterprises in the region and abroad that supported and collaborated with their industries, and contributed to the rapid development of downstream industries that used chemical products as raw materials in the region.
“The agglomeration effect of these enterprises and industries has been continuously enlarged, which has accelerated the expansion of demand for the distribution of chemical raw materials and products, providing strong support and inexhaustible motive force for the development of the chemical market in Zhangjiagang,†said Zhou Yaping.
It is precisely because of this industrial agglomeration, coupled with the unique bonded functions of the bonded area, the Zhangjiagang chemical market has been strongly sought after by traders since its inception. Some domestic large-scale chemical product import and export companies and strong chemical production companies across the country have entered the market one after another, making the market's popularity soar. Within three years, it has become China's largest distribution center for liquid bulk chemicals and has played a pivotal role in the spot market for liquid chemicals.
Fulcrum No. 2: The smooth flow of goods to establish a security system A professional chemical market is a huge distribution center for chemical products. Compared with other professional chemical markets in China, the complete logistics system has become a unique fulcrum for the development of Zhangjiagang Chemical Market.
According to Zhou Yaping, Zhangjiagang Chemical Industry Market, one of the Yangtze River Delta Chemical Logistics Centers, has established the goal of safeguarding the smooth flow of enterprises entering the company as an important development goal, and strives to spread the traditional specialty chemical markets through the establishment of a sound security system. The logistics is concentrated to minimize the transaction costs of merchants. At present, the market itself has formed a fully functional logistics system such as chemical storage, transportation deployment, and import and export product storage. With the market as the carrier, a group of professional transportation companies serving the market customers are gathered. Some settled merchants also saw the business opportunities of market logistics, and they invested in and constructed logistics facilities. Zhongrong Logistics Co., Ltd., which used to be the main trader in the market, built a chemical warehouse with an area of ​​38,000 square meters. According to statistics, so far, only dry market warehousing with investment in the market as the mainstay of the company has reached an area of ​​300,000 square meters, and the liquid storage area has exceeded 100,000 square meters, resulting in an annual cargo handling capacity of 1.5 million tons.
The construction of Zhangjiagang Bonded Logistics Park, which is in the same bonded area as the chemical market, creates a stronger chemical logistics guarantee system. At present, 28 third-party logistics companies, including the Dutch company Fubao, have been put into operation in the region with a total investment of 4 billion yuan. Two chemical docks with a capacity of 10,000 tons or more and 450,000 cubic meters of chemical storage tanks have been built, forming a regional chemical logistics center that has begun to take shape.
Fulcrum No. 3: Information Services Creates Price Benchmarks “Our quotation in the market has now become a barometer for the price of chemical markets in major regions of the country.†Zhou Yaping said to reporters with pride.
In the Zhangjiagang Chemical Market Information Center, the person in charge Fei Yu told the reporter that the market had invested nearly RMB 4 million since the establishment of the market to establish the most advanced information service system in the domestic chemical market, with an investment of 400,000 yuan for special software.
According to her introduction, in order to ensure accurate and timely quotation, they established direct contact with foreign professional websites, achieved mutual information sharing, and established contact with famous foreign traders to obtain real-time transaction prices, and even learned in advance Their intention to trade prices. They selected some representative first-hand dealers from within, and obtained real-time transaction prices for each product from them, which were then identified and aggregated and published.
In order to increase the influence of quotation, they cooperate closely with relevant domestic and foreign institutions. At present, in the United States, China, chemcross network, and some well-known domestic websites, users can find the spot price of Zhangjiagang chemical market every day.
“Next, we will strengthen the construction of online transactions, online fund settlement and logistics distribution system, and guide the settled enterprises to take the lead in completing the transition from traditional transactions to e-commerce,†said Zhou Yaping.
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