Headline: Asia's 1st Online Steel Exchange Eyes $5b Business By '02
Byline: Dow Jones Newswires
Publication date (DD/MM/YYYY): 08/12/1999

SINGAPORE (Dow Jones)--iSteelAsia.com, Asia's first internet-based steel trading exchange aims to reach its business target of $5 billion worth of trades from online steel trading over the next three years, according to a press release from iSteelAsia.com late Tuesday.

Founded in November by various partners, including some key Asian steel enterprises, iSteelAsia.com is scheduled for launch in December 1999 as the "first steel exchange portal" in the region, it said.

"By centralizing and automating the buying and selling processes over the internet", the exchange will offer "significant cost and time savings to industry members", according to the release.

The exchange is a neutral marketplace and its online mechanism allows steel buyers and sellers to transact in a secure and confidential environment, said the press release.

Asia currently accounts for about 45% of global steel consumption, worth an annual turnover of more than $300 billion, said Andrew Yao, chairman of the Hong Kong-based Van Shung Chong Holdings Limited in the press release. The company is a founding member of the exchange.

"We believe the Asian steel market still has a significant growth potential as we see clear signs of an increasing demand for steel supply from this region," he said, adding that there is optimism that iSteelAsia.com will be able to reach its business goal of $5 billion by 2002.

The $5 billion target refers to the "worth of trades" the exchange hopes to corner over the next three years, according to Felix Chan from Grayling Asia, a public relations company, who spoke on behalf of VSC's Yao.

Since its founding last month, iSteelAsia.com has registered over 300 personal users and "the figure is forecast to increase to 1,000 by 2000", said the press release.