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Steel distributors enjoy huge growth potential

Luo Bingsheng, deputy Party chief of China Iron and Steel Association, explained why the domestic steel distribution industry would usher in a golden period of development in the Twelfth Five-Year Plan period (2011-15).

First, the central government will increase policy support for the service sector, which covers the steel distribution business.

Second, the short-flow industry is typically consistent with the country’s energy-saving objective since the distributors usually consume less energy thus discharge little pollution.

Third, they can further increase resource utilization by 3 percent to 5 percent with the help of their centralized production mode that covers cut-to-length, distribution and processing functions.

Fourth, there are chances for the distributors to intensify long-term ties with their customers, as did their Japanese counterparts in the development of deep processing services.
 
                                                                                                                                                                         Source from: ChinaISA.org.cn