Jianshou Steel Co Ltd

Jianshou Steel Co Ltd

Are you researching possibly doing business with Jianshou Steel Co Ltd from China who sells Galvanised Steel Coil? If so, you may want to read the below review of the experience of one buyer and their recommendation to consider when dealing with this company.

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Jianshou Steel Co Ltd

Buyer’s Nationality:

Jianshou Steel Co Ltd

Seller Website: | | | |

Seller Address:
Industrial Park, Liaocheng City, Shandong Province, 252000, China

Initial contact with the supplier:
Online Supplier Directory

Type of product(s) being purchased:
Galvanised Steel Coil

Value of the Purchase Order when the incident occurred:
25,001 to 100,000 USD

Destination market of order in question:
South East Asia

Type of Complaint(s):
Missed Lead Times, Contract Violations, Scams & Other Unethical Activities

Stage of relationship with the supplier at the time of the incident:

User Experience:
From their website, Jianshou Steel Co.,Ltd. suggests that they are a manufacturer of various steel products. I placed an order for slitted galvanised steel coil SGC570 Z220 to be used to produced cold-rolled C-sections for structural roof truss members with a salesperson by the name of Ms. Ariel Han on 15 October 2021.

We have been discussing the order for a few months previously and that has generally been a reasonably satisfactory experience. The agent seemed to be aware of the product where she produced an MTC of a similar shipment the company has delivered previously and awareness of the tax tariff for Thailand. This gave me some confidence that the company has done repeated business with other customer in Thailand. The galvanised steel coil needed to satisfy two requirements: tensile strength of over 570MPa and galvanised coating thickness of more than 220g./sq.m. which we agreed that an independent laboratory would perform this test prior to slitting the master coil.

In hindsight, there were a number of redflags which included the fact that the Seller does not accept Letter of Credit or other banking instruments and instead insisted on a minimum 30% upfront deposit. Pressed for time, I took the risk and went ahead with the order having done some due diligence on the company, including checking Alibaba’s verified company status and SGS Group’s audit certificate both on English and Chinese websites. The agent confirmed a production time of 15 days before I transferred the deposit on 15 October 2021. Once the deposit was received, the experience started to deteriorate. The agent became more difficult to reach as the original delivery date kept being postponed. The agent cited the power rationing in China as the reason which, at the time, was a plausible explanation. The master coil was supposedly “ready” on 6 November 2021. This was an agreed point where we needed to test the goods before proceeding to slit the coil. It took the company a few more days to send the sample to the chosen lab. As a result of the delay, we have had to purchase from alternative local suppliers to fulfil part of the order while we wait for the test results to come back. So I suggested that we carry out a parallel testing with a local lab to minimise further delay as the master coil still needed to be slitted before the finished goods could be shipped.

The agent did not want to do a parallel test but a few days later agreed to test another sample using a local laboratory called Shandong Xinghua Test Technology Co.,Ltd. The test certificate provided by the agent showed that the sample is satisfactory with a reported tensile strength of 656MPa and galvanised coating thickness of 225g./sq.m. With the satisfactory test results, I agreed to go ahead and slit the coils. I was informed that the finished goods was ready to be shipped a few days later on 18 November 2021. In accordance with the agreement and production of photographs of the finished goods, I transfer the remaining amount (70%) as agreed before shipment which I have now asked the Seller to arrange as CIF. While the freight was being organised, fortunately and unfortunately, the test result from the external laborartory came back. The report showed the tensile strength of 345MPa and an equivalent coating thickness of 165g./sq.m. – significantly less than the requirements and, if used, may have resulted in a catastrophic collapse and/or compromised the durability of the structural roof element it was intended for. I, therefore, demanded a clarification for the discrepancy in the two sets of results.

While the agent insisted that the goods passed inspection without offerring any explanation for the discrepancy (i.e. just insisting that the goods passed inspection), I offerred to retest. But this was refused, citing the factory was too busy. Meanwhile, the shipment was again postponed with the agent citing global shipping delays affecting ocean freights to South East Asia! With the continued lack of clarification from the Seller, I managed to contact the Seller’s lab, Shandong Xinghua Test Technology. for an explanation through another Chinese contact. As it happened, this was another red flag that I failed to spot as the laboratory certificate did not contain any address or contact detail. To my horror, the agent from the Seller’s laboratory informed me that the test report which was relied upon when deciding to slit the master coil, that the goods passed inspection and making the final payment was a forgery. The real test report showed a tensile strength of 356MPa, consistent with the independent external laboratory.

I still do not understand why the factory would submit a sample to both laboratories knowing that the material was below standard and then subsequently forged their own test report.

Without a satisfactory explanation on the situation, I declined to take delivery of the goods and demanded a refund. Many calls and text messages went unanswered to a point it clearly became frustrating for both of us. A further contact with the salesperson’s manager was even more frustrating as the discussion became very childish. He even produced another test report which suggests the goods passed inspection but this test was carried out unilaterally and, given the seller’s behaviour, cannot be trusted. The seller refuses to take any responsibility and suggested that any refund paid will depend on how much they could re-sell the goods for and that I may only get scrap value back. And we have not even discussed the damages suffered as a result of this yet!

As I continue to negotiate the refund with the Seller, the hope of getting any refund diminishes as time passes. This may prove to be an expensive lesson learnt for me and I would advise anyone trying to do business with Shandong Jianshou Steel Co.,Ltd. to exercise extreme caution and be completely satisfy with the quality of the product before making any payments to them.

User Recommendations:
In hindsight, there were a few red flags such as the payment term (30% cash deposit and 70% before delivery of goods) and test report. In the future, I would try to use financial instruments such as Letter of Credit, where possible. I would also take my time to verify any Seller’s provided document and not allow the time pressure to rush me into making payments before being fully satisfied with everything.

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