OREANDA-NEWS. April 22, 2011. Weather of early spring in Xinjiang is chilling. Rows of platform trucks carrying in full stock hot coils marched on site of No.3 Warehouse in Bayi Steel. The warehouse was built this year to meet drastically increasing production and sales, from where great majority of products dispatched were delivered to construction corps farms in Xinjiang. Accumulated first quarter sales surpassed 1.62 million tons, a 137,200 tons y-o-y increase; sales in Xinjiang increased 48%, a record best result, reported the press-centre of Baosteel.

2011 new-round "support Xinjiang" unveiled with industrial support as brand new startling spot. Batches of industrial projects and industry zones started up or speeded up planning. Infrastructure construction surged. Competition pattern and demand structure underwent remarkable changes in steel market with real estate, railway, highway, infrastructure construction as four growth engines. Traditional supply and sales pattern was gradually replaced by concentrated government purchase.

To cope with market changes, Bayi Steel timely adjusted marketing and sales tactics with direct supply and government purchase projects, improved one-stop sale and "mobile steel supermarket" as vehicles to be expanded from prefectures, municipalities into counties, towns and corps farms to more rapidly respond to market demands. Bayi Steel accumulatively received 264 orders for 81 projects in 200 counties, municipalities and farms, totaling one million tons in first quarter, fully realized purchase plans. In twelve muqams opera birth place Markit County of Kashgar, monthly dispatch surpassed 30,000 tons for resident poverty alleviation and housing projects in affiliated ten some villages and towns; in North Xinjiang, Kuytun No.5 Division Engineering Regiment signed supply agreement with Bayi Steel for economical housing steel.

While signing bulk government supply agreements, Bayi Steel implemented designated personnel responsibility regime for key ongoing and forthcoming projects, e.g. full tracking service, weekly focus meeting and information sharing, detailed sales scheme, full-range spot-to-spot service, with no key project left out. Since this year, Bayi Steel consecutively signed contracts for projects of Xinjiang section 14 bales of Lanxin High-speed Railway, real estate in Xinjiang Guanghui Group, annual supply of CNPC Xinjiang oil-field exploration, covering over 95% key projects in Xinjiang. It also speeded up new product adoption based on demands to rapidly take up emerging markets. First quarter accumulated variety steel production reached 420,000 tons, sales of pipeline steel, automotive steel plate, and boiler container steel reached 170,000 tons, a record best result. 

Due to fast and timely adjustment of tactics and effective response to market changes, Bayi Steel reaped extraordinary performances despite of cold weather impact on furnace smooth operation. First quarter operating revenue reached 7.156 billion yuan, a y-o-y increase of 1.84 billion. Market share within 2000km diameter area reached 81%, a 6.5% increase from average level of last year.