Auction Trade Platform (How to trade Scrap Metals)

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E - Trade Platform
(How to Trade Scrap Metals)

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Powered by

3. 1. Who can register
2. List of Products that can be traded
3. Defining Contracts
4. Payments involved
5. Margins & Payment
6. Scrap Auction Types
• Continuous Market/ Order Based
• Real-time Trade/Auction
7. How to make Auction Contracts/ Initiate Trade as a Buyer/ Seller
8. Other Terms
• Quantity (Variation)
• Quality Variation
9. LME Options
• LME/COMEX
• Currency Fluctuations
10. Thank You
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Index

4. WHO CAN REGISTER
 Reputed large Scrap Stock Owners;
Yard Owners will be verified &
registered by Mtlexs as SELLERS.
 Reputed Consumers, Users will be
verified by Mtlexs and Registered as
BUYERS.
 Sellers & Buyers sign Membership
Forms, submit KYC documents & pay
required Registration fees.
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How to
be a
Member
User
Registration
Membership
Payment
Attach all
Documents

5. List of Products that can be Traded
• Aluminium: - Telic, Talk, Litho, Talon, Tense, UBC, Utensil, Ingots, Taint Tabor, Pipes, Plates & Sheets,
6063, Telly, Foil.
• Copper: - Birch, Birch Cliff, BSMB (Mill Berry), Regular Berry, Teli Wire, Teli Birch, Ingots, Clove, Cobra,
Sudronic, Mix Copper Scrap.
• Brass: - Honey, Pales, Pallu, Ingots, Tubing’s, Utensil, Yellow Hair Wire Scrap, Gunmetal, Ocean, Lace,
Lady Lake.
• Zinc: - Ingots, Ash, Die-Cast, Dross, Oxide, Zamak.
• Lead:- Strips, Ingots, Battery Scrap, Ash, Mix Lead Scrap, Lead Coil (remelted), Lead Pipe (remelted)
More to Come….
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6. Defining Contract
a. Sellers can define standard contracts for their regular
stocks for sale; Similarly buyers can define their routine
buy requirements.
b. Fields to be defined for SALE OFFER/ Buy Enquiry will be:
 Seller Name/ Buyer Name
 Metal; Product Name and Common Name
 Product Alloy; Quality, Technical Specification or ISRI
standards; if any.
 Offered/ Required quantity; Minimum/ Maximum lot
size, if any; Delivery Variation.
 Packaging of the material.
 Country of Origin or Place of Shipment & required Port &
State of Destination
 Negotiation Preferred in:-
 Fixed Value (LME)
 % of LME
 Premium
 Preferred Currency of Trade is USD or INR, initially
 Preferred type of trade
 Single Buyer/ Supplier full quantity – English Auction
 Multiple Buyers/ Suppliers – Variable Price – Yankee
Auction
 Multiple Buyers/ Suppliers – Same Price – Dutch
Auction
 Continuous Market Trade
 Dates:
 Start date & time of Auction
 End date & time of Auction
 Probable date of shipment of the goods/ Delivery
date
 LME option provided:
 Fixed LME
 To be fixed before shipment date (including Today’s
Unknown CSP; monthly, weekly averages & any other
option allowed by the Seller).
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7. Dashboard
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8. Dashboard
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9.  Aluminium TT Contract , For Aluminium TT Sheets
 Date-- 01-06-2016,
 Name of Seller – Supplier,
 Contract Code – _________,
 Product – Aluminium TT Sheet 99.5% ,
 Packing– Lose/ Bundles, etc.
 Delivery-- EX Factory/Ex Seller Depo,
 Quantity Variation – (+ -) 3%
 Auction type– Forward , Auction Matching type - Yankee,
 Minimum Order Size – 2 Tons, Maximum Lot Size - 50 Tons,
 Negotiate premium – USD 100/ton, Base Price –LME in USD/Ton,
 Tick Size- USD 3, No. of Ticks – 30,
 Trade Margins- 2 % Buyer, Seller 1 %
 Payment within - 5 Days; Delivery within - 8 Days
Sample Contract in USD
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10. Payment Terms
* EMD can be in the form of Corporate Guarantee & Bank Guarantee; subject to confirmation by MtlexsSpot.
** Shipment Bill of Lading will be sent to Buyers Bank & released on final payment.
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Sr. No. Particulars Supplier Buyer
1. Membership Fees $1000 (International)
Rs.50000/- (Indian)
$500 (International)
Rs.25000/- (Indian)
2. Auction Initiation Fees $100 (Rs.5000) per Auction
($500 (Rs.25000) per month
unlimited Auctions/Offers)
$50 (Rs.2500) per Auction
($300 (Rs.15000) per month
unlimited Auctions/Offers)
3. Auction Participation fees NIL NIL
4. EMD* (Pre-deposit Auction) 1-2% 1-3%
5. Payment upon Order Confirmation/ CSP booking NIL 3% to 9%
6. Commission to Mtlexsspot (Weekly Invoices will be
generated)
0.25% 0.15%
7. Payment within 7/15 days (before Shipment as per
Contract)
NIL 5/10% (depending upon
Contract Terms)
8. Final Payment** NIL Through Bank against Bill of
Lading

11. Margins & Payment
1. Pre Auction Margins
 Seller : 1-3% of the Potential Value
 Buyer: 2-4% of the Potential Value
2. Trade Confirmation Margin (Post Trade – 3 days)
 Seller – NIL
 Buyer – 0-3% (Cumulative 5% or as per Contract)
3. LME Price fixation Margin or Pre-Shipment Margin (As per Contract)
 Seller – NIL
 Buyer – 7-13% (Cumulative 10-20%; as per contract)
Note:
Shipment Bill of Lading will be sent to the Bank & Buyer makes balance payment (to pay full 100% of Invoice
Value) & takes delivery.
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12. Scrap Trade Types
A. Continuous Market/ Order Based
 Seller puts material quantity with price on sale (say, Alum TT-ME origin $1300, 24 Tons)
Photos are also uploaded. Test Certificate is optional but ISRI specifications are valid.
 Buyers can put counter offer. For e.g. Buyer1: 1260; Buyer2: 1275
 The market is open from 11.00- 5.00 Indian time or (9.00 am to 9.00 pm for the benefit of the Whole
World Traders.
 The Seller may increase or decrease his price during the open offer.
 The same buyer (or New Buyers) may decrease or increase the price during the offer time.
 Matching takes place when the Seller reduces the price or Buyer increases the price and both have the
same price.
 One or more buyers can be successful
 Order is Confirmed
 Further payment and other processes take place as per contract.
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13. Scrap Trade Types
B. Real-time Trade/ Auction
 Seller puts material, quantity with price (sometimes, the seller may keep the price hidden)
 The Auction is open for 90/120 minutes; during which the seller cannot dispose of this material through
any other Agency.
 Seller can’t withdraw or increase his price during the Auction
 Buyer can increase his bid to match the Seller Prices.
 Order is Confirmed
 Further payment and other processes take place as per Contract.
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14. How to make Auction Contracts/ Initiate Trade as a Buyer/ Seller
Define Product Specification & Quantity to Buy or Sell

Define Terms of trade such as Base Price, Delivery Point, Packing type, Minimum & Maximum quantity,
Lot size, Insurance, Payment terms, etc.

Decide Date & Time of Auction

Decide type of Auction
[For Sellers English type of Auction is preferred]
[For Sellers with large quantities; where multiple buyers are preferred; Select Yankee type Auction]

Pay deposit (1-3%) before start of auction.
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15. During the process, Successful Bidder is decided, which is updated Online.

The Successful buyers deposit another (3-14%) in the account of MtlexsSpot

The Sellers releases the Delivery Order in favor of the Buyer (this is also displayed & available
on the systems, as well as e-mailed to Buyer)

The Buyer releases the Balance Payment to the MtlexsSpot
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The Buyer gets delivery (either Seller dispatches or Buyer arranges transport to pick up as per
the Contract Note)
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MtlexsSpot releases payment to the Seller
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16. Arbitration
Quantity (Variation)
 Weight Shortage/ Variation of (+) (-)% is allowed as per ISRI Specification.
 Any weight shortage to be intimated before opening the Container Seal.
 Any further weight shortage to be intimated before opening the bags/ packings/ boxes etc.
 In case of dispute, a joint inspection will be carried out OR (Solution/ Mechanism as on the Normal/Physical Trade)
Quality Variation
 Quantity Variation can arise due to lower metal content; high % of attachments; Presence of Dust/ Sediments and other
Non-Metals items and such.
 Any possible quantity variation should be informed prior to using the material.
 A joint inspection will be carried out and even a joint sample will be drawn to do Chemical Testing in Govt. approved
Laboratory.
 In case the dispute is still not resolved; Arbitration can take place as per General Terms of Trade.
Note:-
Arbitration Committee can be approached for trade related differences between Supplier & Buyer.
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17. LME Option
LME/COMEX (As per the Seller Choice)
(LME price confirmation can be as per the offer in the Contract; such as:
 Unknown CSP of today (Trade day)
 Monthly Average
 Period Average
 Unknown CSP can be booked on any day before Shipment is dispatched
 Unknown CSP can be booked on any day before Shipment arrives its destination port.
 Fixed Price (No LME option)
Currency Fluctuations
Booking/ Hedging currency is at Sole discretion of the buyer.
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18. trade@mtlexs.com
twitter.com/mtlexs
facebook.com/mtlexs
Contact us on:
Mr. Suneel R. Mardia :
+91 – 9323216277
Email : suneelrmardia@mtlexs.com
Mrs. Saloni Mardia Kothari :
+91 – 9820515353
Email : salonimardia@mtlexs.com
Toll Free : 1800 224 226
Visit us on: www.mtlexsspot.com
Thank You
Let us make a new beginning,
Let us make History…
Linkedin.com/company/mtlexs-com
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