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INTERNATIONAL COMMODITIES TRADING – AGROFOODS - INT ERNATIONAL BUSINESS

OFFER SCRAP (Used Rails / HMS 1 & 2) APRIL 2011

ALL PRICES SUBJET TO CHANGE AND ARE ONLY FOR SOFT QUOTING PURPOSES

Total Quantity Monthly

USED RAILS

R50/R65

(ISRI CODE 27 - 29)

HMS

1 & 2

(ISRI CODE 200 - 206)

Metric Tonnes (MT) Shipments Prices US Dollars Prices US Dollars

360,000 MT (1 x 30,000 MT) x month x 12 months $ 300.00 $ 295.00

720,000 MT (2 x 30,000 MT) x month x 12 months $ 300.00 $ 295.00

1,080,000 MT (3 x 30,000 MT) x month x 12 months $ 290.00 $ 285.00 2,160,000 MT (6 x 30,000 MT) x month x 12 months $ 290.00 $ 285.00

# WITH (ITARLC) PAYMENT + 10$MT

* LENGTHS IS FROM (6 Meters – 12 Meters) IN BULK

**CUTTING 1 to 1,5 Meters ADD USD 5,00/MT

*** SHIPMENTS WITH 30,000 MT VESSELS

Incoterms 2000: CIF – ASWP

Contract: 12 months only - (NO SPOT / NO TRIAL ORDERS).

Minimum order quantity: (30.000 MT X 12 MONTHS) = 360.000 MT

Origin: EUROPE / CIS COUNTRIES - (Seller Choice) We will ship it from all origins.

Packing: In Bulk

Payment terms for contract: (NO ACCEPT OTHERS PAYMENT METHODS)

1) by Irrevocable, Transferable Auto Revolving Letter of Credit “ITARLC” at Value of

one month shipment, guaranteed by the bank for the contract value. Payable 100% at

sight against set of shipping documents. (BL , SGS).

OR

2) The contract shall be secured by irrevocable BG /SBLC equal at value of 1 month

shipments, valid for the period of 14 months and one (1) day from the date of issue.

The buyer shall get SKR where the instrument will be lodged. The finance instrument

will be returned at maturity day to buyer bank or cashed back by last month shipment.

OR

3) By Irrevocable, Transferable Divisible DLC (UCP 600) Documentary Letter of Credit

Guaranteed by the bank for the contract value. Differed Payment shipment to

shipment. 90 days from BL against set of shipping documents.

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Performance Bond Guarantee: Two percent (2%) of Performance Bond Guarantee provide by seller after receiving Buyer’s financial instrument accepted by the seller and sellers bank.

Proof of Product (POP): SHALL BE PROVIDED BY SELLER AFTER RECEIPT OF FINANCE

INSTRUMENT ACCEPTABLE TO SELLER AND SELLER’S BANK .

Product Insurance: Insurance the insured amount should be 110% of the total amount

of Goods. This cost shall be borne by the Seller.

Shipment: First Shipment in 45/55 days (or less) and rest in every 35/45 days after

receipt of payment instrument to the seller’s bank.

Inspection: By “SGS” (www.sgs.com) Inspection for Quality, Quantity and weight,

Service at Seller’s Cost shall inspect the Commodity at Place of Loading. The quantity of

goods will be confirmed on a certificate issued by the independent international

survey company "SGS" (Society General de Surveillance), at sellers expense. Other

quantity inspections at the port of unloading shall be at buyer's expense.

PRELIMINARY PRODUCT DOCUMENTATION PER LIFT:

A FULL SET OF THE FOLLOWING DOCUMENTS:

• COMMERCIAL INVOICE NAMING THE GOODS AS “USED RAIL OR HMS 1 & 2” NOTIFY

CONSIGNEE IN (4) ORIGINALS AND FOUR (4) COPIES

• CERTIFICATE OF ORIGIN NAMING THE COMMODITY AS “USED RAIL OR HMS 1 & 2” IN TWO (2)

ORIGINAL AND THREE (3) COPIES

• PACKING LIST, NAMING THE COMMODITY AS “USED RAIL OR HMS 1 & 2” IN TWO (2) ORIGINAL

AND TWO (3) COPIES

• BILL OF LADING CLEANS ON BOARD STATING “FREIGHT PREPAID” IN THREE (3) ORIGINALS AND

THREE (3) NON NEGOTIABLE COPIES. WEIGHING LIST IN FOUR (4) ORIGINALS AND FOUR (4)

COPIES

• CERTIFICATE OF QUANTITY AND QUALITY NAMING THE COMMODITY AS “USED RAIL OR HMS 1

& 2” ISSUED BY SGS OR EQUIVALENT IN TWO(2) ORIGINAL AND TWO (2) COPIES

• SGS CHEMICAL ANALYSIS CERTIFICATE NAMING THE COMMODITY AS “USED RAIL OR HMS 1 &

2” IN TWO (2) ORIGINAL AND TWO (2) COPIES

• SGS CERTIFICATE OF NON EXPLOSIVE MATERIALS NAMING THE COMMODITY AS “USED RAIL

OR HMS 1 & 2” IN TWO(2) ORIGINAL AND TWO (2) COPIES

• SGS CERTIFICATE OF NON RADIOACTIVE MATERIALS NAMING THE COMMODITY AS “USED RAIL

OR HMS 1 & 2” IN TWO(2) ORIGINAL AND TWO (2) COPY

• SHIP OWNERS CERTIFICATE STATING AGE OF VESSEL (NOT MORE THAN 20 YEARS OLD)

• THE INSURANCE CERTIFICATE TRANSFERABLE IN THE BUYER NAME COVERING 110 % OF THE

CARGO VALUE

EACH OF THE ABOVE DOCUMENTS SHALL HAVE ORIGINAL SET WHICH SHALL BE SEND TO THE

BUYER’S BANK BY INTERNATIONAL COURIER (COPY OF THE COURIERS RECEIPT AND TRACKING

NUMBER WILL BE SENT TO THE BUYER ON DAY OF DISPATCH). FULL SET OF DOCUMENTS NON-

NEGOTIABLE WILL BE SENT TO THE BUYER AT THE SAME TIME. (COPY OF THE COURIERS RECEIPT

AND TRACKING NUMBER WILL BE SENT TO THE BUYER ON DAY OF DISPATCH).

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SPECIFICATIONS, QUALITY AND STANDARD:

Scrap Steel to be supplied under the present offer shall conform with the steel scrap

specifications and standards of the Institute of Scrap Recycling Industries (ISRI)

www.isri.org and shall be strictly limited to used rails and scrap steel to the standards

specifically set out below:

USED RAILS: (According to ISRI Specifications)

a) R50-R60: used long rail steel scrap in compliance with ISRI standard classification

R50 (51.67 kg/m), Suitable for re-rolling into bars and shapes. Free from bent and

twisted rails, frog, switches, and guard rails, or rails with split rail.

b) R65: used long rail steel scrap in compliance with ISRI standard classification

R65 (64.72 kg/m), Suitable for re-rolling into bars and shapes. Free from bent and

twisted rails, frog, switches, and guard rails, or rails with split rail.

c) Clean scrap without slag, dross, trash, wood, plastic, oily parts, grease, alloy,

prohibited goods, whole sets of machine, vehicles, and usable parts for machines, cast

iron, motor turning blocks, engine blocks, war and explosive or armor plated materials,

excess rust, corrosion, dust and dirt, mud or wastes and without any harmful

impurities and totally free of radioactive contamination and poisonous material and

any other materials exceeding the level accepted and allowed by international

acceptable norms Purity, or AQSIQ or the import regulations custom.

d) All scraps shall be free of explosive and oily materials and woody substance in any

event.

CHEMICAL COMPOSITION:

C: 0.54 – 0.82

Si: 0.18 – 0.40

Mn: 0.60 – 1.05

S: 0.04 max

P: 0.035 max

As: 0.01 max of Mass share

Norms: R-50 GOST-7173-75 and R-65 GOST-8165-75

R50 (51.67 KG/M) - GOST 7173-75

R65 (64.72 KG/M) - GOST 8165-75

Chemical composition shall fully be ISRI 27-29 compliant for all R50 - R65 used long

rails steel.

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HMS 1 & 2: (According to ISRI 200 – 206 Specifications)

The scrap consists out of a mix of mill scrap (stampings, cuttings, bars, etc.), Industrial

scrap (nuts, bolts, misc. pieces, etc), auto and truck frames and bodies, railroad scrap

(wheels, axles, parts of locomotives and carriages, etc.), ship scrap (fittings, plate

pieces, parts), construction scrap (plate, bars, angle pieces, rods, steel pipe, etc.)

miscellaneous commercial scrap (appliance casings ,frames and parts, etc.). Non-metal

impurities total 1% (one percent) or less. The scrap will also be totally free from any

types of bombs, arms and ammunition, mines, shell, cartridges, sealed containers, gas

cylinders, explosive shells or explosive materials in any form either used or otherwise

as per the ISRI code below.

• HMS 1 - ISRI Code 200: Heavy melting steel. Wrought iron and/or steel scrap

1/4 inch or steel scrap ¼ inch and over in thickness. Individual pieces not over

60 x 24 inches (charging box size) prepared in a manner to insure compact

charging.

• HMS 1 - ISRI Code 201: Heavy melting steel 3 feet x 18 inches. Wrought iron or

steel scrap 1/4 inch over in thickness individual pieces not over 36 inches x 18

inches (charging box size) prepared in a manner to insure compact charging.

• HMS 1 - ISRI Code 202: Heavy melting steel 5 feet x 18 inches. Wrought iron 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.

• HMS 2 - ISRI Code 203: Heavy melting steel. Wrought iron or steel scrap, black

and galvanized. 1/8 inch and over in thickness, charging box size to include

material not suitable as No.1 heavy melting steel. Prepared in a manner to

ensure compact charging.

• HMS 2 - ISRI Code 204: Same as IRSI 203 but max size 36 x 18 inches.

• HMS 2 - ISRI Code 205: Same as IRSI 204 but free of sheet iron or thin gauged

material.

• HMS 2 - ISRI Code 206: Same as IRSI 204, but max size 60 x 18 inches

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IMPORTANT DETAILS

� Performance Bond can not be more than 2%;

� Pricing is based on the first year annual volumes;

� Seller will not provide past documents (B/L, S.G.S, POP). Only the POP and S.G.S

inspection, issued (bank to bank) ONLY, warrants to the quality, quantity,

weight, specifications and product; all the documentation is sent by the Seller´s

bank to Buyer´s bank only at the time specified in procedures and NOT BEFORE.

Please do not insist; NO SEND PAST DOCUMENTS

� AQSIQ: available

� Port of loading yard visit: Only the buyer is allowed to visit yard port of loading

after open non operative L/C financial instrument, NOT BEFORE.

� We do not work of the Buyer’s procedures. A Buyer must agree to accept and

follow the Seller’s procedures. The Sellers will not alter their procedures.

� Finally, due to the large number of buyers “adventurers”, we are NOT

accepting orders without being accompanied by BCL, RWA or ICPO WITH BANK

ENDORSED (ICPO WITH SOFT PROBE AUTHORIZED BY TWO BANK OFFICERS &

STAMP/SEAL OF BANK)

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Preliminary procedures: (The procedures are not negotiable)

� Buyer sends LOI or ICPO with RWA/BCL or BANK ENDORSED;

� Seller’s issues sends FCO - Full Corporate Offer;

� Buyer return FCO signed and seal (on each page);

� Seller send DRAFT CONTRACT;

� Buyer return DRAFT CONTRACT signed and seal (on each page);

� Seller send HARD CONTRACT;

� Buyer bank send Open NON OPERATIVE and transferable RDLC or SBLC valid for 14

months;

� Seller send PB 2% & POP through Banks;

� Shipment commences as per the terms of the contract schedule.

Sign/Seal authorization:

ANTONIO FERA Gral. Manager

Commission : Total Price + 5 USD [sholud be added]Seller side 2.5 USD [closed]Buyer side 2.5 USD [open]