Steel Billets

Dear Sirs.





Good morning !











we are(Israel'-Romanian company) ready, willing and able to purchase the following commodity as per the specification and the quantity and at the price as specified in the terms and conditions as stated below. This representation is made with full corporate authority and responsibility of the above.







Commodity: Reinforcing Bare A-111(A-400), as per GOST 5781-82, buyer’s options.



CHEMICAL CONTENT: 25Г2С %: C 0,20-0,29; Mn 1,2-1,60; Si 0,60-0,90; P 0,04; S 0,045; Cr 0,3; Ni 0,3; Cu 0,3



Quality: A-111(A-4000)as per Gost 5781-82, in according with buyer’s options.



Sizes: 8 mm – 10 mm - 12 mm – 14 mm,(from 10mm reinforcing bare not plate ) in according with the buyer’s options.For the first delivery, of 10,000MT the dimentions will be (+/-10%)



8 mm – 25%



10 mm – 25%



12 mm – 25%



14 mm – 25%



. length tolerance +/- 100mm



Total Quantity: 340,000 MT, during 12 moths, from AUGUST 2003 till JULY 2004



Monthly quantity: 10,000 MT to 30,000 MT per month during 12 month. (first delivery will be 10,000MT)



Shipments: 30,000 MT per month from September 2003 till July 2004, with the first shipment to be effected in August 2003 for a minimum 10000 MT.



Price : for the first 3 (three) months’ shipments in the month of August- September-October 2003: USD …. / MT, FOB Bleack Sea.



Origin: Russia only.



Packing: Bundles of max. 7 (seven) ton.



Invoicing: Net weight



Sizes and qualities: The quantities per sizes and qualities for the monthly shipments of 30,000 MT, will be submitted by the Buyer to the Seller immediately upon signing of the contract.



Guarantees of deliveries: 3% percent non-operative performance bond issued by first class Bank, to be operative on receipt of the Letter of Credit in favour of the Seller, and Producing Mill’s guarantee of product availability. In the event that of the first monthly delivery of the goods within 45 calendar days after opening L/C, or for refunding full remainded sum of the L/C within 5 working days in case non-delivery of the each next monthly shipment of the goods within 30(thirty) calendar days is not effected, the total value of the Performance Bond will be retained.



Non-execution of the contract delivery gives to the buyer a right to annul the contract, and withdraw his BG and to release PBG in his favour. But the buyer has not right to demand of with drawing L/C during all contract term besides situation above mentioned.







Payment: Letter of Credit (L/C)issued by world first class Bank for the whole value of the quantities of the 3 (three) months’ shipments in favour of the Seller or the Producing Mill, according to the Seller’s nomination on the Producing Mill, to be issued immediately on receipt of tree percent non-operative Performance Bond and Guarantee of product availability payable with partial shipments allowed, hundred percent at sight at the counter of the issuing Bank against:



Commercial Invoices



Bill of Lading



Certificate of origin



Packing list



Mill quality and quantity Certificates



SGS quality and quantity Certificates and non radio-activity Certificate



PROCEDURE:



1. After signing the contract, the seller bank will be open a non-operativ performance bond, and the seller bank will be open a L/C.



2. Seller’s bank confirm readiness accept the L/C and the buyer’s bank confirm readiness accept the GPB.



3. After fulfillment each monthly delivery the buyer bank make the payments to the seller bank against shipping documents, mentioned.









Best Regards

Igor Sklyar

manager