Quantity Price USD The Deal Work Steps

1. Buyer sends either a LOI or an ICPO mentioning all relevant

100.000 MT details like the type of product, quantity required, duration of
delivery, name of the destination port, Payment Terms- SBLC (MT
200.000 MT 300 760)/Confirmed, Irrevocable, Auto- revolving DLC (MT 700).
2. Seller provides an official Full Corporate Offer (FCO).
300.000 MT 3. The Buyer signs the FCO and also affixes their company's official
stamp/ Seal.
400.000 MT 4. Seller sends a draft SPA which will also contain the registration
certificate and other such identification papers of the seller.
500.000 MT 5.Buyer and seller mutually agrees to carry out minor modifications
290 to the SPA (if required). Buyer & Seller then signs & stamps the
600.000 MT SPA.
6. Seller sends final Pro-forma Invoice to buyer.
700.000 MT 7. Buyer opens either a SBLC (MT 760) or DLC (MT700) in favour
of the seller as per the terms of the SPA. The buyer also has the
800.000 MT option of arranging to send a Pre-advice (MT 705) to the seller's
270 bank, if he wishes to visit the warehouse of the seller in the Kingdom
900.000 MT of Saudi Arabia to inspect the Steel, take Videos, and obtain a
certificate of Analysis from the seller.
1 Million MT 8. Seller will issue a Performance Bond covering a value between
2 Million MT 250 2% to 15% of full quantities to the buyer.
9. Buyer opens either a SBLC (MT 760) or Auto- revolving DLC
(FULL AMOUNT OR LC/SBLC FOR SHIPMENT WITH BANK
3-5 Million MT 200 GRANTEE) -conditions: At sight (activated irrevocable- transferable
- revolving - conditional on receipt of the goods, and the amount of
6-10 Million MT 180 the arriving railway is deducted for the shipment only).
10. Seller starts the shipments as per the terms of the SPA.
Insurance prices 11.Note: If the buyer is committed to a contract of 5 million tons, or
VAT tax and Transporting prices above, the LC will be opened on each million alone WITHOUT
BANK GUARANTEES FOR THE REMAINING QUANTITIES.
(CIF)
12.Or: Buyer can issue LC with full bank amount for the 5 million
Prices do not include tons.
Commission