Headline: Web steel trader aims to lift share
Publication date (DD/MM/YYYY): 29/01/2000

By Samuel Yeung

Steel trader iSteelAsia.com is expected to generate turnover of up to US$350 million in deals this year, according to chief executive Andrew Yao Cho-fai.

It would represent about one million tonnes of the 800 million tonnes traded per year by all companies in Asia, Mr Yao said.

"Our purpose is to convert part of that total volume by using the Web," Mr Yao said.

After it was launched last month, the Hong Kong-based Web site conducted its first transaction on January 11, when Switzerland-based Duferco Group sold about 5,000 tonnes of tensile-reinforcement bars to locally based Shougang Concord for $1 million, he said.

Dutch-based ABN Amro was the financial settlement bank handling payment for the transaction, Mr Yao said.

The company received a commission of less than 1 per cent from the deal.

The portal would introduce other value-added services in a bid to widen its revenue stream, Mr Yao said.

"We will integrate services such as shipping and other logistic supports, providing a just-in-time delivery to users," he said.

The processing costs of the steel trade could be reduced by about 12 per cent by using such integrated services, Mr Yao said.