Chromiumtrade has established a strong and enduring presence in China, developing long-term relationships with a leading state-owned steel producer over several decades. Historically, sales from Chinese producers in Europe have historically been subject to volatility, with end users typically purchasing on an as-needed basis and displaying a more speculative approach to buying. This inconsistency created challenges for steel producers in areas such as logistics, production planning, and quality control, as European buyers did not fully rely on Chinese suppliers for their core purchasing needs.
To address these challenges, Chromiumtrade partnered with a major Chinese producer to create a more stable market presence through an exclusive distribution agreement. This collaboration involved the development of a comprehensive customer and distribution strategy, which emphasized the benefits of a local presence to end users. By working with Chromiumtrade, customers could establish a more reliable and long-term supply chain.
As a result, sales prices stabilized, reducing the speculative nature of customer purchasing behaviour, and sales volumes became more consistent. This stability enabled both end users and the Chinese producer to benefit from better planning and forecasting. Additionally, lower logistical costs and economies of scale led to more competitive pricing, resulting in improved purchasing and sales conditions for both parties.