Baosteel on-line steel industry e-commerce platform

Xu Lejiang, chairman of Baosteel Group, revealed at the press conference of Baosteel's academic annual meeting on the 4th that the “Shanghai Steel Exchange Center”, a steel spot trading e-commerce platform jointly built by Baosteel Group and the company affiliated with Shanghai Baoshan District Government, was formally listed. Baosteel began to fully embark on the e-commerce platform. In the future, it hopes to build a steel e-commerce trading platform with influential and leading advantages.

The “Shanghai Steel Exchange Center”, a steel spot trading e-commerce platform jointly built by Baosteel Group and the Shanghai Baoshan District government subsidiary, was formally launched. Baosteel plans to invest 100 million to 200 million yuan in the center, among which Baosteel Group holds 90% equity and Shanghai Steel Trade Finance Industrial Park holds 10% of equity.

Xu Lejiang said that in the current era of overcapacity and oversupply, e-commerce is the best way to understand supply and demand in a timely manner. Some time ago the team was also led to visit Ma Yun and discuss the iron and steel industry as an e-commerce business. However, Baosteel currently has no specific cooperation with Alibaba Group. It will maintain exchanges in the future and consider developing some cooperation on the logistics information platform.

It is understood that the "Shanghai Steel Trading Center" consists of three service platforms: "Fanda City," "Guest Circle," and "Bao Shida." Among them, "Boshida" was established in 2003 and mainly sells its own products; "Vanda City" is a platform serving steel producers and traders, similar to the brand product sales platform in physical stores; “The use of a trading model, which is also a trading model for most of the domestic steel e-commerce platforms, provides polymetallic cargo resources and facilitates the matching of small and medium-sized users, which means that Baosteel has placed a full range of steel trading markets.

It is reported that Baosteel is seeking a new pattern of “one body and two wings”, namely, steel as the main body, IT represented by Baosight Software as the left wing, and e-commerce based on the Shanghai steel trading market as the right wing. The launch of the Shanghai Steel Exchange Center means that Baosteel's strategic plan has taken shape.