Hms1 & 2 (80: 20) And Hms1 (100% )

202 No. 1 heavy melting steel 5 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 inches x 18 inches (charging box size) prepared in a manner to insure compact charging.

201 No. 1 heavy melting steel 3 feet x 18 inches. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 36 inches x 18 inches (charging box size) prepared in a manner to insure compact charging.

200 No. 1 heavy melting steel. Wrought iron and/or steel scrap 1/4 inch and over in thickness. Individual pieces not over 60 x 24 inches (charging box size) prepared in a manner to insure compact charging.

ISRI-CODES:

Nickel                  0.45
Chromium          0.20
Molybdenum      0.10
Manganese        1.65
the combined residuals other than manganese shall not exceed a total of 0.60 percent.

Steel scraps shall be considered free of alloys when the residual alloying elements do not exceed the following percentages: percent

HMS1&2 (80:20) and HMS1 (100%)

18)    Upon receipt of this LOI-ICPO the Final Sales Contract is sent for Buyers Signature

17)    Type of Contract required

16)    SWIFT Code

15)    Account Number

14)    Account Holder

13)    Complete Bank Details (Name Address Contact Officer Tel Fax and Email)

12)    Number of Banking days required to open L/C

11)    PB requested

10)    Unloading Port

9)       Country of destination

8)       Preferred Origin or Sellers Option

7)       Length of Contract (Minimum 1 Year)

6)       Quantity/Month (Minimum 30.000 MT/Month)

5)       Target Price/MT CIF

4)       Type of Product requested (see above)

(This is the Company that receives the product at destination)

3)       Ship-To Company (full details if different from Buyer)

2)       Signatory name

1)       Buyers Full Company Name Address Contact Officer Tel Fax and Email

           LOI-ICPO MUST INCLUDE: (please use this as a check list)

         YARD VISIT MOST WELCOME AFTER PRE-ADVISE OR NON-OPERATIVE LC

10.       Shipment/s commence as per schedule mutually agreed.

9.          Within 7 (seven) banking days Seller posts Performance Bond (PB) for the value of 2% to guarantee the delivery

8.          Within 7 (seven) banking days after returning the signed draft contract to the Seller, the Buyer will issue to Seller the financial instrument as mutually agreed.

7.          Fax or courier exchanges hard copy of contract.

6.          Buyer and Seller sign the contract after making amendments if any. Buyer sends draft of agreed financial instrument to be analyzed and confirmed by Sellers Bank.

5.          Buyer sends draft "text" of agreed financial instrument.

4.          Seller issues draft Contract to Buyer.

3.          Buyer signs the Full Corporate Offer in token of acceptance is sent to Seller along with ICPO including an updated Bank Capability Letter (BCL).

2.          Seller issues the Full Corporate Offer for buyer's perusal.

1.          Buyer issues the Letter of Intent including full banking details.

PROCEDURES:

?         The loading port/s will be only disclosed after the issuance of the financial instrument.

?         AQSIQ certificate and other shipping documents will be only submitted at buyer's bank as part of the documents required for payment.

?         BCL and LOI can be issued by 2 different companies but must be updated and signed by the bank officer on the bank letterhead.

?         Actual photos of stock, previous inspection reports, previous BL's can be sent after receiving of buyer's LOI and BCL.

Contracts of less than 12 months will be considered as spot deals with partial LC's. The rates will be higher than the soft quoted.

REMARKS:

PAYMENT:              Payment by Unconditional, Revolving, Irrevocable, Confirmed, Transferable, documentary L/C at sight From Prime Banker

Site Visit:  Buyers are encouraged to send their representative to loading site to witness loading and inspection.            

Inspection: By SGS/CCIC for quality, quantity and radioactivity at seller cost.

Delivery: within 45 days from receipt of payment instrument.

Performance Bond: 2% to be included in contract of seller

Origin:

Prices are in USD per MT

Herewith we would like to confirm that we and our principal seller are in position to supply the following ferrous scrap to your company for annual contract of 12 months with extensions

RE: INTRODUCTION & LETTER OF OFFER FERROUS SCRAP (HMS1, HMS1&2 AND USED RAILS R50-R65)

AIBM SDN BHD

Steel scraps shall be considered free of alloys when the residual alloying elements do not exceed the following percentages: