Chinese Steel Mills Establish Electronic Trading Platform

Online trading platforms have been launched by Chinese steel companies in the hope that the Internet will drive sales and help them get through their rough days. These platforms not only reduce costs, but also provide customers with better access to information, allowing them to freely trade stocks online with metallurgical companies.

However, online platforms are nothing new to the steel industry, as many companies experimented with going online a decade ago. But as demand outstripped supply, steel companies felt the need to seriously research e-commerce.

Minmetals Corporation has launched an e-commerce platform. The platform will connect buyers with goods and sellers and can gradually become an online steel supermarket. In difficult times, the steel sector wants to build an open and standard e-commerce platform. Despite the benefits, analysts say the network is far from a solution to China's ailing steel industry.

Du Kelin, in charge of the online trading platform Wuhan Iron and Steel Corporation, said that “Traditionally, the multiple distributors standing in the way between steelmakers and end users have included costs of about RMB 50 per tonne of steel. Transactions made through online trading platforms bypass distributors, which lowers the cost. "

Liu Changqing, CEO of Langesteel.com, said that "with the industry downturn, supply outstrips demand, steel traders and customers will now be able to benefit from e-commerce by providing greater opportunity. The company expects to sell more steel this year compared to 2013. year. "