Those years, as a lawyer, I was repeatedly ask to give advice on fraud cases, especially on cases in which the suspicious fraudster pretend to make a deal in the name of some famous brand company. In fact, some well-known companies, like Taiyuan Iron and Steel (Group) Co., Ltd. (TISCO) has explicitly warned about such practices, stating that any entity fraudulently using the “Taigang” brand is not authorized by them.
What You Should Know: Common Steel Trade Frauds
Cases like that fit a broader pattern of steel trade fraud, often originating from certain regions in China, including Shandong province. These fraudulent companies often share common characteristics:
Too-Good-to-Be-True Prices: They offer prices significantly below market rates, sometimes even lower than production costs.
Questionable Documentation: They may present forged documents, such as mill test certificates or bills of lading, to appear authentic.
Newly Registered Entities: These companies are often recently established, making it hard to verify their track record.
High Staff Turnover: A high rate of change among sales staff can be a warning sign