Supply of Iron Ore from Peru or Chile

16 responses

1. Hi, good morning,

   Unfortunately the buyer will continue with the other provider. Maybe in the future he will call us again… But our deal from his side is canceled. Thank you very much for your effort.

   Best regards,

   1. Hi good morning. Thanks and noted and look forward to future possibilities.
      Brgds

2. Hi good afternoon,

   Further to my previous message, I have been talking to the seller and can confirm that he will use the CFR Brazilian quote price as quoted on the website of UMETAL (www.custeel.net) to calculate the invoice. The invoice will be calculated based on three days average price from the date of loading the shipment minus the discount which will remain constant for the duration of the contract.. For your info todays quote is as under:

   Seaborne Market Prices of Brazilian Iron Ore on Oct 12, 2020 09:57:00
   Brazilian lumps.
   Fe: 62.0%
   FOB: US$109.10
   CFR: Main North China ports: US$ 129.10
   Port of loading: Tubarao
   Moisture: 4% moisture.

   Since we are offering 62% Fe Lumps and today’s CFR price is US$ 129.10 and if you apply a discount of 12% net CFR to the buyer will be US$ 113.60/MT. Remember the quoted Platt price can go up and down depending on the market conditions. Please inform your potential buyers/friends and confirm comments for further action accordingly. Thanks.

3. Hi good afternoon,

   Concerning the above subject, I have been checking and there may have been a misunderstanding in regarding the Platts. Can you check with your buyer and confirm that the discount of 15% that he has got is based on which Platt? If it based on Chinese Platt prices, I need to know which line of Platt they are using to calculate the price. This is very important to know because as per my understanding the current Chinese CFR Platt price for 62% Fe content Iron ore is around US$ 133/MT while my seller gave a gross discount of 13% based on USA Platt of US$ 124.02/MT. You can see the difference is huge and our discount is in fact a much better deal.

   I look forward to hearing from you. Thanks.

4. Good morning and thank you for your message,

   The buyer will not choose our offer with price 12%-13%. He says he will try the other offer they have (with price -15%), and if something goes wrong they will come back to us…. we will see…
   Thank you again.

   1. Good morning to you too and noted your comments. Should the buyer change his mind and the product is still available, we will proceed to close the deal. Thank you for your cooperation.

5. And they are ready to buy 200k per month. Thank you.

   1. Thank you for your message that is duly noted. I have, also, since spoken to the seller and can confirm the following:

      1- Discount: The total/best discount the seller will offer is gross 13% and net 12%.

      2- Commission split: The 1% will be divided equally into three parts i.e. one third to your side, one third to my side and one third to the moderator/platform owner. (33.333% for each side).

      3- Delivery: The seller will deliver 80,000MT (2x40K) for the first month from Peru and then ramp the production to 4x40K/month from Peru and the remaining can be shipped from Chile origin. In any event it will be sellers option to fill the quantity of 200K/month at his option and convenience.

      4- Payment: The payment must be via an irrevocable,confirmed, divisible, revolving and transferable DLC payable 100% upon shipping and presentation of all relevant documents by the seller to his bankers. DLC to be issued and/or confirmed by a prime world bank. Confirmation charges, if any, to openers account.

      5- Inspection: Seller will, at his own cost, get each shipment inspected by SGS/equal for Q&Q at the port of loading which will be considered as final.

      6- PB: Seller will post 2% PB to activate buyers DLC.

      I think I have covered every point and look forward to your comments. Thank you.

6. The Seller should pay the commisssion, if ok on your side. My partner and myself suggest that we split the commission in two parts. On our side we are three persons besides me. So the two parts, if also agreed by you and the moderator, should be you, the moderator and myself. And the other part the three individuals (my friend in Turkey, a trader in Lebanon, and the Chinese trader in China)

   Please let me know your comments on this.

   Thank you and nice day.

7. Sorry, I don’t understand, what do you mean Platform owners fees?

   1. We are being brought together by a gentleman (who is known to both of us) and is hosting this Platform. He has to be compensated for his services.

      Also I forgot to ask in my previous message. Please confirm the exact quantity your clients will buy should the final discount figure be agreed by them. Your initial enquiry states that they will buy 100-200K/month. Please check and confirm. Thanks.

8. Thanks for your prompt response. I will check and revert by tomorrow. However please confirm who is going to cover your fees? Buyer or seller. Your response will have bearing on the final figure. We have also to take into account the Platform owners fees as well. Thanks.

9. Thanks for the offer.
   The buyer has a source that offered minus 15% and we need to beat that price and make sure that we still make profit. Do you think is it possible?

10. To start, I can confirm that that the CIF main China ports price will be Platts minus 9%. FYI todays Platts price for 62% Fe content is US$ 124.02/MT. Indeed the seller can supply higher Fe content but price will also go up too. Every months invoice will be calculated on Platts (which may go up or down) while the discount will remain constant. So if the price formula is acceptable to the buyer, we can start with an LOI from the buyer + NCNDA and FPA from the seller. Thanks.

11. Good morning,
    I have a chinese group looking for 100k to 200k tons per month.
    Is there only one seller or there is two sellers from Peru and Chile?
    How do you want to continue? They are ready to start.
    Best,

    1. Hi Good morning,
       Thank you for your response and here under is answer to your question.
       There is only one seller that is based in Peru and he will be the seller of record.

       In regards to delivery, please note:
       – Because of port restriction, he can do 3 x40K/month from Peru
       – He can do 100K/month from Chile origin.
       So in essence he can do 220K/month for 12 month term contract.

       Hoe this answers your question and if you still have any question or need clarifications, please feel free to ask for the same.
       Thanks.