MMTC LIMITED

Metals

MMTC (A Govt. of India Enterprise) - India's Single Largest Trader of metals. It's metals division imports and exports Non-Ferrous metals, Industrial raw materials, Steel items, Pig Iron, Non Ferrous metals scrap and Iron and Steel scrap etc. MMTC's share of import in India's import of refined base non-ferrous metals in terms of value is about 20%.

ITEMS OF TRADE

MMTC imports following metals as per LME deliverable specifications and also Non LME grade material according to the requirements of our customers:

Base Non-Ferrous Metals: Copper (min. 99.90% purity) in the form of Wire bars, Cathodes, CC rods Aluminium (min. 99.70%) Zinc Ingots High grade (min. 99.95%) Zinc Ingots Spl. HG (min. 99.995%) Lead Ingots (min. 99.97%) Tin (min. 99.85% purity) Nickel (min. 99.80% purity ) (Squares 4''x4'' ,uncut,Briquettes, Ferro Nickel etc.)
Minor Metals : Antimony (min. 99.65% purity) Silicon (Grade 4-4-1 and 5-5-3) Magnesium (min. 99.9% purity) Mercury (min. 99.9% purity)
Industrial Raw Materials, Noble metals and ferro alloys
Pig Iron, Slag, Steel scrap, HR Coils, CRGO and Steel items

CENTRALISED IMPORTS AT CORPORATE OFFICE

Imports of all Non-Ferrous Metals, Industrial Raw Materials, Minor Metals, Steel and concentrates are centralised at corporate office in New Delhi and the sales are effected through various sale centres located all over India.

QUALITY MATERIAL

MMTC imports quality material conforming to international specification viz. ASTM or BSS or LME approved brands. Most Customers of MMTC are institutional buyers who have stringent quality norms for accepting the raw materials. Quality Certificate from Producer/ LME approved assayer is essentially a part of MMTC's purchase contract.

STRATEGIES OF PURCHASE (IMPORTS)

MMTC imports non-ferrous metals generally on CIF/C&F Main Indian Ports basis. The purchase price is based on the LME cash settlement price plus premium. A variety of tailor-made pricing options to suit the requirements of different customers like monthly average price, flexible quotational period from date of order to 10 days after B/L date, spot pricing etc. are offered.

PURCHASE (IMPORTS) THROUGH EMPANELLED SUPPLIERS

MMTC sources various metals from accredited and reputed empanelled suplliers. The process of empanelment for credible suppliers is always open. MMTC Limited New Delhi solicits applications from interested reputed suppliers who meet the specified criteria for empanelment by MMTC for supply of :-

1. Non Ferrous Metals (Lead Zinc, Nickel, Tin, Copper, Aluminum etc.)

2. Industrial Raw Material viz. Ferro Alloys, Nobel Alloys and Minor Metals etc.

3. NFM Scrap and Secondary Non ferrous Metals (recycled copper, lead, zinc and scrap etc.)

Those suppliers who are interested to be empanelled with MMTC and meet the specified criteria may apply with full details, indicating :-

(i) Name of the metals that they would like to be empanelled for : and

(ii) Category under which the applicant wish to be empanelled,
(iii) Details about Applicants banker like complete address and contact details.

to The General Manager(NFM), MMTC Limited, Core-1, Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi - 110 003. For Further information and any queries please contact :- The General Manager-NFM Division on telephone no. 91-11 2436 2200 Extn. 1405 or 1415 or 1216, Fax No. 91-11-2436 0368, E-mail:' tsrao@mmtclimited.com'

CRITERIA FOR EMPANELMENT OF NON-FERROUS METALS, INDUSTRIAL RAW MATERIALS, MINOR METALS, NOBEL & FERRO ALLOYS SUPPLIERS (As approved and updated till 18.02.2009)

(1) CRITERIA FOR EMPANELMENT OF NON-FERROUS METALS

Sl. No.

Category

Producers of non-ferrous metals

B (i)

Ring Member or Associate Member of LME/KLTM

B (ii)

Physical traders who have a running account with Ring Dealing or Associate Members of LME/KLTM, with satisfactory bank reference and minimum US$ 50 Million turnover per year in Non Ferrous Metals during last three years. A certificate from Ring Dealing or Associate members of LME/KLTM to be furnished to this effect indicating credibility, credit line offered by them and on performance of their account with them.

Metals Traders linked to producers with exclusive producer backing/selling rights, with satisfactory bank reference.

If not ring members or associate members of LME/KLTM, then they should have handled non ferrous metals for last three years with a turnover of at least US$ 50 million. The company should be profit making company in three out of immediate past five years with satisfactory bank reference.

Suppliers who have successfully supplied any Non Ferrous Metal to MMTC as empanelled supplier during last one year would also be permitted to make offers and would be empanelled at their request for other metals provided they submit a satisfactory back up arrangement for new metal proposed to be supplied.

Any supplier who is dealing in Non Ferrous Metal and not fulfilling any of the MMTC’s criteria ( A to E) for empanelment and desirous to supply the material to MMTC be also empanelled subject to the following:

A: Satisfactory bank reference

B: Standing Bank Guarantee for US$ 10000/- as security for performance of the commitments.

C: Satisfactory pre-shipment inspection by third party inspection agency at MMTC’s choice, about quality, quantity and packing of material.

The following Authenticated/Certified documents are required in support of the above details/criteria in all the categories except ‘A’ and ‘B(i)’ mentioned above:

Date of commencement of Non Ferrous Metals operations.
Turnover for Non Ferrous Metals business during the last three years and balance sheet/account statement for the last three financial years.
Details of Non Ferrous Metals handled.
Quantum of business in Non Ferrous Metals done globally and into India.
Satisfactory bank reference to be sent directly to MMTC.

(2) CRITERIA FOR EMPANELMENT OF SUPPLIERS OF CONCENTRATES OF BASE METALS

Should be a well established supplier of Non Ferrous Metals concentrates to various user industry during the last three years or a producer of Non Ferrous Metals Concentrates.
Should have supplied minimum 10000MT of Non Ferrous Metals Concentrates to Indian Buyers or others in Asia during the last three years.
Satisfactory bank reference for new suppliers (other than those already empanelled by MMTC for Non Ferrous Metals).
Should have minimum turnover of US$ 100 Million in the last three years.

Interested suppliers to submit documents in support of the following:

Full name and postal address of the company
Name and designation of the authorized official to deal with.
In case of trader, details of producer whose material would be offered.
Typical specification of the material and brands that would be offered.
Balance sheets for the last three financial years.
Names and address of the bankers for obtaining bank reference.
Details of customers to whom the concentrates were supplied in the last three years indicating quantity of each shipment.
Certificates from their leading bankers indicating period of their association with the company, name and designation of the authorized signatories of the company, registered address and present status of the company etc.

(3) CRITERIA FOR EMPANELMENT OF SCRAP AND SECONDARY NON FERROUS METALS SUPPLIERS
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Following categories of suppliers who fulfill requisite criteria as indicated shall be empanelled for supply of scrap and secondary non-ferrous metals to MMTC.

Category A:

Scrap and secondary non ferrous metals stock and sale dealers, or producers or their authorized dealers of secondary non ferrous metal, fulfilling the following criteria :-

a)	Should have handled scrap and/or secondary non-ferrous metals at least during last two years.
b)	Profit making in two out of last three years.
c)	Satisfactory bank reference with an annual turnover of US$ 25 Million during last three years.
d)	Should accept to abide by all terms and conditions for import of scrap/secondary metals as laid down by Government of India from time to time.
e)	Should agree to accept responsibility for all quality claims of the material and indemnify MMTC on this account. Shall submit an indemnity bond along with detailed claim procedure on this account which would be binding for settlement of claims.

In case of stock and sale dealers empanelment shall be subject to satisfactory credit rating report by an accredited credit rating agency.

(4) CRITERIA FOR EMPANELMENT OF industrial raw material, minor metals, nobel and ferro alloys
Following categories of suppliers who fulfill requisite criteria as indicated shall be empanelled for supply of industrial raw materials, minor metals, nobel and ferro alloys to MMTC.

Category A:

Existing producers of Industrial Raw Materials.

Category B:

Metals Traders linked to producers having selling rights or Letter of Authority.

Category C:

In case the applicant does not belong to category A or B, then they :-

a)	Should be handling Industrial Raw Material, Minor Metals, Nobel & Ferro Alloys, at least during last two years.
b)	Profit making in two out of last three years with a turnover of US$ 10 million per year in minor metals, Ferro alloys and industrial raw material.
c)	Satisfactory bank reference.
d)	In case applicant is located in India they should submit letter of authority as per MMTC proforma from their back up supply source whenever they participate in our tender.

GENERAL CONDITIONS

The validity of empanelled suppliers of NFM is upto 31.03.2014, subject to their satisfactory performance.
Since empanelment is a continuous process, suppliers who wish to empanel may apply for empanelment subject to fulfillment of requirement as per the criteria listed above.

NETWORK OF SALE OUTLETS

There is a wide network of Sale outlets spread all over India. Major Sale outlets are as follows:

North Zone : Ludhiana and Faridabad;
West Zone : Mumbai and Ahmedabad;
East Zone : Kolkata, Bhubneshwar and Jamshedpur;
South Zone : Chennai, Bangalore, Hyderabad and Cochin;

THREE TYPES OF SALES

Customers have the following options for purchase:

High Seas basis
Ex-godown basis
Ex-bond basis
MMTC imports metals with split Bill of Lading to cater to the need of small customers who want to buy on high-seas basis. Special incentives are also given to regular customers.

ADVANTAGE OF PURCHASING THROUGH MMTC

Market Information to assist the customer in Pricing : MMTC's in-house Dealer Room monitors Real Time Information on LME prices of all base non-ferrous metals and also the exchange rates. Support services in the form of market intelligence is also provided to the customers, if they so desire.

PROFESSIONALLY TRAINED MANPOWER

MMTC's import and sale of non-ferrous metals is handled by an expert team of professionals with a dedicated product portfolio.

Management of Price volatility risk through use of hedging instruments:MMTC was the first Indian company to obtain RBI's approval for hedging in base non-ferrous metals through London Metal Exchange. Various hedging tools can be used by customers to cut down the price volatility risk of non-ferrous metals purchased through MMTC.

High credibility: MMTC has always lived upto its commitments because of which it has a very high credibility among the international suppliers.

MARKETING OF STEEL PRODUCTS OF NEELACHAL ISPAT NIGAM Ltd. (NINL)

Metals Profit Centre is marketing Iron & Steel products of NINL, a company setup in the state of Orissa in which MMTC is the major equity holder and main promoter.

HIGH CREDIBILITY

MMTC generally imports non- ferrous metals from its suppliers on Cash Against Documents (CAD) basis. It enjoys excellent credibility amongst all suppliers and buyers as it keeps its commitments even in the wake of adverse market conditions.