Xinhua reported that a flurry of online trading platforms have been launched as Chinese steel companies hope that branching into the Internet sphere will boost sales and help them weather the hard days.

These platforms not only bring the cost down, but they provided customers with better access to information, allowing them to choose freely in steel companies' online inventories. However, online platforms are nothing new for the steel industry as many companies experimented with going online a decade ago. But these platforms did not come into their own then as demand easily exceeded supply and steel companies felt no need to seriously explore e-commerce.

China Minmetals Corporation opened its e-commerce platform. It is the latest foray into e-commerce following the establishment of more than 100 such platforms by steelmakers and traders across the country since last year.

Mr Yu Engang deputy GM of Minmetals Development Company Limited said that “The Xinyilian platform will link commodity buyers with sellers and gradually become an online steel supermarket. During hard times, the steel sector must build an open and standard e-commerce platform. Despite its much touted advantages transparency, efficiency and lower cost, analysts have said that bringing steel trading online is far from being a solution to China's ailing steel industry.”

Mr Du Kelin manager in charge of the online trading platform of Wuhan Iron and Steel Corporation said that “Traditionally, standing in the way between steelmakers and end users are multiple hierarchies of distributors, who incurred a cost of around CNY 50 per tonne of steel. Transactions made through online trading platforms that bypass distributors can avoid that cost.”

Mr Liu Changqing CEO of Langesteel.com, an active online third party trading platform said that "With the industry in a slump and supply outstripping demand, steel traders and customers can now both benefit from e-commerce, providing a better opportunity for these online platforms to expand. The company expects to sell 2 million tonnes of steel this year, compared to 700,000 tonnes in 2013.”