Liu Leiyun, president of the China National Association of Metal Material Trade (CAMT), has stated at the second annual meeting of China's steel industry entrepreneurs that, among 150,000 steel traders in China as of the end of 2010, at present around half of these steel traders have dropped out of the steel market, with about 70 percent of steel traders in Shanghai exiting the market.
The traditional operating model of booking products at lower prices from steelmakers, while selling them to downstream users at higher prices is not applicable any more, the CAMT official said, adding that it is more and more difficult for steel traders to obtain financing from banks, resulting in traders' shrinking transaction volumes.
Mr. Liu said that the changing market situation requires steel traders to adjust their business patterns, and to attract customers by providing them with good service in the industry chain.