SteelVerify

FAQ

Questions buyers ask before sourcing steel from China

Straight answers to the questions we hear most often from international steel importers — from first principles to certificate checks, payments, and recovery.

Getting started

The big-picture questions buyers ask before their first China steel order.

Is it safe to buy steel from China?
Yes — a large share of the world's steel is sourced from China without incident. The risk is not the country but unverified counterparties. With supplier verification, independent inspection, and safe payment terms, the great majority of fraud is preventable.
What is the most common scam when importing steel from China?
The two most damaging are payment redirection (a last-minute email changing the bank account) and forged mill test certificates (a clean PDF that does not match the steel shipped). Both are covered in detail in our scam library.
How much does steel fraud typically cost a buyer?
Reported losses range from a forfeited 30% deposit on a single container to six-figure sums on bulk orders or hijacked wire payments. The largest losses almost always involve money sent before any independent verification, which is why payment structure matters so much.
Do I need an agent or a sourcing company to buy steel safely?
No — a good agent can help, but the same protection comes from running the verification steps yourself: confirm the legal entity, verify certificates at the source, inspect before you pay the balance, and use safe payment terms. If you do use an agent, verify the agent with the same rigor you would a supplier.
Is SteelVerify free, and does it recommend or sell suppliers?
Everything here is free. We are an independent buyer-protection resource — we carry no supplier listings, referrals, or paid placement, and we do not broker steel. We publish fraud patterns and checklists, not a directory of 'approved' mills.

Verifying a supplier

How to confirm a counterparty is real and is who they claim to be.

How do I verify a Chinese steel supplier before paying?
Confirm the business license on the official GSXT registry, match the legal name to the bank account and contract, verify mill test certificates directly with the named mill, run a live video walk-through of the production line, and arrange pre-shipment or container-loading inspection. Our free verification checklist walks through each step.
What is the GSXT registry and how do I use it?
GSXT is China's National Enterprise Credit Information Publicity System — the official registry where you can confirm a company's registered legal name, status, registered capital, and business scope. Match the name there exactly against your contract and the bank account, and check that the business scope actually includes manufacturing if the company claims to be a mill.
How can I tell a real steel mill from a trading company?
Ask directly, then verify. A trader's GSXT business scope will not list steel production, and a trader will struggle to provide a live, unscripted tour of a production line under its own name. Being a trader is not itself a problem — but you must then verify the actual mill behind the order, and confirm who you are really paying.
How do I check if a Chinese steel factory is real?
Insist on a live, unscripted video tour during working hours, ask them to show signage and machine nameplates with the company name, and match that name against GSXT and the bank account. Reverse-search website photos to catch borrowed imagery, and for high-value first orders commission an independent on-site audit.
Should I visit the factory in person?
For a large first order it is the gold standard, but it is not always practical. An independent local audit firm can visit on your behalf for a fraction of a deposit, confirm a real facility operates under the contracted name, and meet the people you have been dealing with.

Certificates & quality

Confirming the steel matches the paperwork you were promised.

How can I check if a mill test certificate is genuine?
Contact the issuing mill directly — not the trader — and ask them to confirm the heat numbers, grade, and chemistry. Request the original native file rather than a flattened PDF, and plan an independent PMI test on arrival. A certificate that only ever arrives as a flat image is a red flag.
What is a PMI test and do I need one?
Positive material identification (PMI) uses a handheld XRF analyzer to read a steel's actual elemental composition in seconds. For grade-sensitive products — stainless 304 vs 316, structural grades, alloy steels — it is the definitive check that the metal matches the certificate, and it is inexpensive relative to the risk.
How do I avoid getting 201 stainless sold as 304?
Do not rely on the certificate or a supplier-chosen sample — both can be genuine while the bulk load is 201. Require PMI testing of the shipped lot tied to the heat numbers, write grade-rejection rights into the contract, and treat magnet or spot-test results as a prompt for PMI, never a final answer.
What is container-loading supervision and when is it worth it?
Container-loading supervision (CLS) puts an inspector at the container during stuffing, photographing every layer with timestamps and reconciling counts and weights against the packing list. It defeats the head-and-tail (sandwich) scam, where good material hides substandard goods in the middle, and is worth it on any order where hidden quality or quantity is a risk.

Payments & contracts

Structuring the deal so a problem costs you time, not capital.

What payment terms are safest for a first order?
For a first order with a new supplier, prefer a letter of credit or escrow over a large deposit wire, keep deposits modest, and tie payments to inspection milestones. Lock the banking details into the signed contract and refuse mid-deal changes.
Letter of credit or T/T — which should I use?
For a first order with an unverified supplier, default to a letter of credit or escrow because the supplier is only paid when documented conditions are met. For a verified, repeat supplier, a modest-deposit T/T with the balance tied to inspection is usually acceptable. Always make independent inspection one of the required documents under an L/C.
My supplier suddenly changed their bank account — is it a scam?
Treat any last-minute change of banking details as a hard stop. Confirm the change by phoning a number you verified earlier (not one from the email), and refuse beneficiary accounts in a different country or company name. This payment-redirection scam is the single most common way buyers lose large sums.
Why shouldn't I pay an offshore or personal bank account?
Pay only an account in the contracting company's exact legal name. Third-country or personal-name accounts — often justified by 'tax efficiency' — are hard to recover from and frequently signal fraud. A name mismatch between the registered entity and the beneficiary account is one of the strongest warning signs in the whole trade.

If something goes wrong

Acting fast to recover funds and protect the next buyer.

I think I have been scammed buying steel from China — what should I do?
Act within hours: contact your bank to attempt a wire recall, preserve all evidence with full email headers, notify both banks in writing, and file a report with the authorities. See our report and recovery page for the full step-by-step.
Can I recover money already wired to a fraudulent supplier?
Sometimes, but only if you act immediately. Funds can occasionally be frozen or recalled while still in the first beneficiary account, a window of roughly 24–72 hours. Full recovery of money sent abroad is the exception, which is why prevention and a small holdback structure matter so much.
Does insurance cover steel-import fraud?
It can. Trade-credit, marine cargo, and specialist cyber or crime policies may respond to supplier fraud or business email compromise depending on the wording. Notify your broker promptly — policies often have tight deadlines — and provide your evidence and any police report numbers.

Scam-specific questions

Targeted answers for the individual fraud patterns documented in the scam library.

Forged Mill Test Certificates (MTC / EN 10204 3.1)

How do I verify a mill test certificate from China?
Contact the named steel mill directly through an official channel — never through the trader — and ask them to confirm the heat numbers, grade, and chemistry on the certificate. Request the original native file rather than a flattened PDF, and plan an independent PMI test on arrival.
What is an EN 10204 3.1 certificate?
EN 10204 3.1 is an inspection certificate issued by the manufacturer confirming the supplied steel meets the ordered specification, validated by the mill's own authorised inspector. Fraudsters fake the document or recycle heat numbers from unrelated batches.
How can I tell if a mill test certificate is fake?
Red flags include a certificate that only arrives as a flattened image, a mill with no record of the heat number, suspiciously rounded or identical chemistry across batches, and a seller who resists third-party PMI testing.

Payment Redirection & Bank Account Swap

My Chinese supplier suddenly changed their bank account — is it a scam?
Treat any last-minute change of banking details as a hard stop. Confirm the change by phoning a number you verified earlier (not one from the email), and refuse beneficiary accounts in a different country or company name. This is the single most common way buyers lose large sums.
How do I protect a wire transfer to a Chinese steel supplier?
Lock the banking details into the signed contract at the start, verify any change by phone to a pre-verified contact, reject third-country or personal accounts, and for first orders prefer a letter of credit or escrow over a deposit wire.

Phantom Factory & Borrowed Credentials

How do I verify a Chinese steel supplier is a real manufacturer?
Look up the business license on the official GSXT registry and confirm the legal name matches the contract and bank account exactly. Ask for a live, unscripted video walk-through of the production line, and commission an independent on-site audit for larger or first orders.
What is the GSXT registry?
GSXT is China's National Enterprise Credit Information Publicity System, the official registry where you can confirm a company's registered legal name, status, and scope. The name there must match your contract and the bank account you are paying.

Head-and-Tail (Sandwich) Coil Loading

What is the head-and-tail loading scam?
Compliant coils are placed at the front and back of the container while substandard, rusted, or short-weight material is hidden in the middle. Door photos look perfect, and the problem is only found after full unloading at destination.
How do I prevent short-weight or sandwich-loaded steel?
Require full container-loading supervision (CLS) with timestamped photos of every layer, weigh a sample of coils, and reconcile actual weights against the packing list before authorising the balance payment.

Coating-Weight & Galvanizing Fraud

How do I check the zinc coating weight on galvanized steel?
Test the coating mass independently using a triple-spot test per ASTM or ISO. Benchmark the quoted price against the realistic zinc cost for the coating class — a price well below that is a strong warning sign — and add coating tolerance and rejection terms to the contract.
What does Z275 mean on galvanized steel?
Z275 denotes a zinc coating mass of 275 g/m² total on both sides, which drives the corrosion life of the product. Fraudulent suppliers cite the spec on the certificate but apply a thinner, cheaper coating that rusts early.

Deposit-Then-Disappear

A Chinese supplier took my deposit and went silent — what can I do?
Act fast: contact your bank to attempt a recall, preserve all evidence, and file a formal fraud report. To avoid it next time, keep deposits modest, tie payments to inspection milestones, and prefer a letter of credit or escrow for first orders.
Why is a price far below the market a warning sign?
A quote noticeably cheaper than every other supplier is a classic hook used to win the order and secure a large deposit quickly. Genuine mills rarely undercut the market significantly, so treat outlier-low prices with extra scrutiny.

Grade Substitution (lower grade shipped than ordered)

What is steel grade substitution?
The supplier ships a cheaper, lower grade than the one you ordered — for example S235 instead of S355, 201 instead of 304 stainless, or A36 instead of A572. The mill certificate often looks correct because it is issued for a different, lower batch.
How do I detect grade substitution?
Mandate PMI (Positive Material Identification) and mechanical testing on arrival for grade-sensitive steel, cross-check heat numbers and chemistry with the named mill, and write clear grade, tolerance and rejection terms into the contract.

Bait-and-Switch Quality

How does bait-and-switch steel fraud work?
The supplier sends an excellent sample that passes your testing, you place the order, and the bulk shipment is a lower grade or reject material. The certificate references the good sample batch rather than what was actually shipped.
How do I protect against it?
Test the actual shipped lot rather than just the sample, require retained sealed samples witnessed by an inspector, insist the MTC corresponds to the shipped heat numbers, and hold a meaningful balance until arrival testing passes.

Fake Third-Party Inspection Report

How do I verify a third-party inspection report?
Contact the inspection agency directly and confirm the report number and inspector exist in their system. Crucially, appoint and pay the inspection agency yourself rather than accepting a report supplied by the seller.
Why are supplier-supplied inspection reports risky?
If the seller commissions and hands you the report, it can be forged, cherry-picked, or from an agency that never visited the site. Independent inspection only protects you when you control the appointment, scope and acceptance criteria.

Fake Bill of Lading & Ghost Shipment

How do I verify a bill of lading is genuine?
Contact the shipping line directly to confirm the B/L number and container exist and correspond to your cargo, and cross-check the vessel's actual movements against the claimed loading port and date. Recycled or fabricated B/L numbers are a common ghost-shipment tactic.
How can I avoid paying for a shipment that was never loaded?
Use container-loading supervision to prove the goods were actually stuffed, verify the B/L with the carrier, and prefer payment terms that release funds only after verified loading rather than against a copy document.

Double Invoicing & Customs Under-Valuation

Why is under-declaring shipment value dangerous for the buyer?
As the importer of record you are liable for the declared value. If the supplier files a lower invoice with customs, you face penalties, demurrage, audit flags and delays — not the seller. A small duty 'saving' can become a large liability.
How do I avoid double-invoicing problems?
Insist on a single, accurate invoice that matches all documents, control your own customs filing rather than delegating it to the seller, and reject any proposal to under-declare value however small the apparent saving.

Email Domain Spoofing & Business Email Compromise

How does business email compromise work in steel trade?
Fraudsters compromise or imitate the supplier's email, monitor genuine correspondence for weeks to learn the deal, then send fraudulent payment instructions from a look-alike domain at the moment of payment.
How do I stop email-based payment fraud?
Verify every payment instruction by voice on a pre-agreed number, check the full sender address rather than the display name, and adopt a strict multi-channel confirmation policy for all transfers.

Offshore / Third-Party Bank Account Trap

Is it safe to pay a Chinese supplier's Hong Kong or Singapore account?
Treat it as high risk. Offshore and third-party accounts are heavily exploited because funds are hard to trace or recover. Only pay an account in the contracting company's exact legal name, and verify it against the business registration first.
What if the supplier insists on an offshore account for 'tax reasons'?
Treat a third-country or personal beneficiary as a hard stop until you have verified it. Prefer a letter of credit so the banking chain is documented, and never let urgency push you into paying an unverified account.

Forged Standards Certification (ISO, CE, SASO, SNI, API)

How do I verify a steel conformity certificate?
Verify the certificate number on the issuing body's official platform (for example SABER for SASO), confirm it covers the exact product and grade you ordered, and contact the certification body directly to confirm validity.
Which steel needs certificate verification most?
Regulated and project steel — structural sections, rebar, pressure and line pipe — where a forged ISO, CE, SASO, SNI or API certificate can pass non-compliant material into safety-critical use. For regulated markets, also require pre-shipment conformity testing.

Have a specific supplier in mind?

Run them through the free, structured verification checklist before you send a deposit.

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