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E - Trade Platform

(How to Trade Scrap Metals)

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Powered by

1. Who can register2. List of Products that can be traded3. Defining Contracts4. Payments involved5. Margins & Payment6. Scrap Auction Types

• Continuous Market/ Order Based• Real-time Trade/Auction

7. How to make Auction Contracts/ Initiate Trade as a Buyer/ Seller8. Other Terms

• Quantity (Variation)• Quality Variation

9. LME Options• LME/COMEX• Currency Fluctuations

10. Thank You3

Index

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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.

How to be a

Member

User Registration

Membership Payment

Attach all Documents

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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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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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Dashboard

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Dashboard

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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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. 10

Sr. No. Particulars Supplier Buyer1. 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 NIL4. 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

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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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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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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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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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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

The Buyer gets delivery (either Seller dispatches or Buyer arranges transport to pick up as per

the Contract Note)

MtlexsSpot releases payment to the Seller

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ArbitrationQuantity (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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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 FluctuationsBooking/ Hedging currency is at Sole discretion of the buyer.

trade@mtlexs.com

twitter.com/mtlexs

facebook.com/mtlexs

Contact us on: Mr. Suneel R. Mardia : +91 – 9323216277Email : suneelrmardia@mtlexs.com

Mrs. Saloni Mardia Kothari : +91 – 9820515353Email : salonimardia@mtlexs.com

Toll Free : 1800 224 226Visit us on: www.mtlexsspot.com

Thank YouLet us make a new beginning,

Let us make History…

Linkedin.com/company/mtlexs-com

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