GSX to cease trading on 17 May

The board of GSX yesterday decided to cease operations from 17 May after negotiations to for new funding unravelled earlier in the week. The company was backed by TradeArbed, Samsung, Duferco and Cargill.
GSX had a well-respected e-trading system, but was unable to generate enough revenues from transactions, and had not made sufficient progress in its new strategy to sell the technology. Whilst some of the original investors were keen to continue, others were not, and hence the decision to stop trading.
According to Lou Schorsch, the company’s president and chief executive, it is likely that the GSX technology will be taken on by some of the original investors. The staff, however, will seeking new pastures, though Schorsch said that it was still too soon after the decision for him to have an idea of what he would do.
As a result of GSX’s demise, E-Steel - now known as New View Technologies - is the only original steel e-market place still going. Even this company, despite its massive initial investment, is some way from a positive cash flow, according to industry observers. Several second-generation producer-backed systems, such as Steel-24/7, which is being funded by the European producers, remain operational, however.

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