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Electronic trading platform launched
Aggregated Source: Shanghai Daily: Business

THE Shanghai Iron and Steel Trade Center was launched yesterday with the aim of using e-commerce to enhance the Chinese steel industry's global influence, especially at a time of overcapacity and tiny margins.

The electronic trading platform, initially funded by Baosteel Group and the Baoshan district government, will also provide supply chain financing, warehousing and logistics, as well as consulting services. The idea is to provide one-stop service for companies along the steel supply chain.

The e-commerce platform will cut trading costs, officials said. Currently, trading and financing costs are high in the industry, where traders mainly place orders by phone and take deliveries at warehouses.

The center, which aims to bring state-owned and private firms together, also hopes to create a "Shanghai price" and "Shanghai standard" for the industry, a spokesman said.

While Baosteel plans to move 30 percent of its steelmaking capacity out of Shanghai to help the city adjust its growth mode, steel trading remains crucial to the local economy.

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Copyright Shanghai Daily: Business