OREANDA-NEWS. December 20, 2011. Baoshan Iron & Steel Co., LTD. Chemical Branch (Hereafter referred to Baochem) sunshine purchase and sales work has taken a healthy development road full of the chemical enterprise characteristics since it implemented the online bidding sales of the waste materials at the beginning of 2009, reported the press-centre of Baosteel.

Up to now, the accumulative total online purchase materials has been up to 359500 tons with the total amount 1.349 billion yuan and the purchase amount has been saved up to 5.4282 million yuan. The total amount of the online sales has been up to 162700 tons with the auction turnover 994 million yuan and the turnover rate 72.16%, and the sales revenue has been added 79.42 million yuan, the premium rate reaching 7.99%.
 
At the beginning of 2009, Baochem took the first step in the online sunshine purchase and sales. In January, the waste materials were carried out the online auction sales; in July, the chemical materials such as the coal tar and the crude benzol were tried on the online auction purchase and in August, the chemical products were carried out the online auction sales. With the increasing depth of the sunshine purchase and sales, Baochem has continuously carded the operation process, perfected the management system and the organizational structure and reinforced and promoted the existing achievements. Baochem has continuously expanded and added the suppliers (the useers) participating in the online auction, the number of which has reached more than 20 in each round and all of them have passed the membership certificate, the qualification warning and the unified electronic files and realized the "dynamic" management of the supplier. Baochem has  established a set of level 3 controlled pricing mechanism in order to provide guarantee to regulate the transparent purchase and sales. In addition, Baochem has gradually perfected the system to strive to be open, transparent, controlled and efficient, and has formally issued 17 management systems relevant to the sunshine purchase and sales up to now.
 
To create a trading platform more suitable to the purchase and sales mode such as the chemical materials and the products, the chemical treasure platform invested jointly by Baochem, the Oriental Steel and Wisco Coking was put into operation formally in January. At present, 600 members have been using the platform and the big customers organizing the trade on the net have developed to 8 and the online transaction amount came up to 1.4 billion yuan from January to November this year. In recent two years, Baochem has obtained the remarkable achievement in the sunshine purchase and sales work.

The adequate online auction creates a fair competitive environment for the suppliers and the users and has created the strong accumulation effect to a number of outstanding suppliers and users. The domestic famous manufacturers and circulation businessmen have become the main force of the online auction, and the suppliers and the users' philosophy of "The purchase and sales business on the platform and the after-sale service on the site" has come into being. The wind vane role of part of products is appearing increasingly, for example, the market gradually looks on the coke tar and the crude benzol "Baochem to the factory price" as the wind vane of the price in the district of East China, strengthening the market influence and the pricing power of Baochem.