Vnsteel Plans to Set up Electronic Steel Exchange

The Vietnam Steel Corporation (Vnsteel) has said it will establish an electronic steel exchange, planned for 2009, in order to strengthen the capacity of its distribution systems, the Vietnam News Agency reported. 

 

The steel exchange is expected to act as an open information source, providing simple and economical means for both vendors and buyers to exchange products via e-transactions, the internet and by telephone.

 

The center will be developed following the model utilized by the Shanghai steel exchange, which is considered to be the best in China, handling a total transaction volume of up to 600,000 tons per day.

 

The corporation also plans to build a steel logistics and construction materials center, first of all in Hanoi and then in Ho Chi Minh City.

 

According to Vnsteel, traditional steel distribution channels possess a number of shortcomings, such as high investment and management costs and low production efficiency.

 

The implementation of these two projects is expected to benefit producers and consumers, as they will be able to access an open, updated, clear and transparent source of information regarding consumers and would have the power to limit the value of sales via intermediary agencies. (VNA)