NEW YORK (CNNfn) - Several steel trading companies are forming a joint Internet-based exchange to link steel buyers and sellers.|
The move by Cargill Steel, Duferco, Samsung Corp. and TradeArbed is the latest joint venture between rivals in the world of business-to-business online sales. Other larger efforts to link suppliers and buyers in automotive, medical supplies, aerospace and retail industries are underway as well.
The new site plans to offer online financing, risk management and logistics options as part of the exchange.
The four partners' steel operations are primarily involved in trading steel, although each also has some steel-making capability as well. Samsung is a South Korean industrial conglomerate, while Cargill is a privately held U.S. conglomerate. Duferco is based in Lugano, Switzerland, although its steel operations are primarily in Brazil. TradeArbed is based in Luxembourg.
The companies say the market for international steel trading is worth about $100 billion annually.
The statement said the four partners are pledging an unidentified portion of their international steel trade activity -- amounting to billions of dollars in transaction value -- to ensure sufficient steel trading volume, market-making ability, and guaranteed liquidity for the exchange.
The technology partner of the new exchange was not identified in the statement, but it said Andersen Consulting's global metals and eVenture practice would support the exchange.
The exchange, which has yet to be named, plans to be open for business by the fourth quarter.