Balli Steel grows with China's steel industry

About three years ago, there was a major shift in the Chinese steel industry as new mills with state-of-the-art technology came online to meet the country's high demand.

Increased capacity, currently at 50 million tones a year, not only satisfied demand at home but also positioned China as a leading exporter of steel products.

Balli Steel has been in China as a steel trader for 35 years and watched as the country boosted production sharply.

Specializing in commodity trading, the family-owned, privately held firm has experienced tremendous growth as steel prices continue to rise. It reports annual sales of $1 billion from operations in Europe, America, the Middle East and Asia.

Balli's presence and strong relationships in China are major reasons for its success. Sourcing 30 percent of the steel it trades from China, the firm has helped establish a solid reputation for Chinese steel.

"There is a spectrum of products coming from China. But overall, the steel from China meets global standards. Today, you will see Chinese products in Europe that you cannot get from European mills because the technology used in mills is so new," explained CEO Nasser Alaghband.

Balli has carved a unique niche in the steel market and thrives as a commodity trader because of its ability to see next-step services.

It provides not only a diverse range of products but also logistics services, as well as administration and risk management expertise. Its global presence also allows it to purchase large orders.

"We provide efficient and experienced risk management and contract management. We are also able to supply customized value-added services to the customer, such as pulling together special orders from many different suppliers for one customer. To provide this type of service you need to have global mass. Not everybody chooses to be on that end of the matrix," Alaghband pointed out.

Alaghband would like to continue building relationships with Chinese steel producers in the long term. He believes strongly in the future of the Chinese steel industry, and sees many areas for cooperation between Balli Steel and local producers.

www.ballisteel.com

(China Daily 08/28/2007 page18)