GENERAL PURCHASING GUIDELINES ON EVRAZ HIGHVELD’S EXPORT STEEL PRODUCTS
(As at 1 September 2013)
All contracts are subject to Evraz Highveld Terms and Conditions, however, for the various products, the following apply:
1. GENERAL REQUIREMENTS
1.1 Post production processing
ð Normalising @ 70mt per day maximum, subject to capacity being available, at an additional extra of USD50/mt.
ð Normalised rolling also at an additional extra of USD50/mt.
ð Subject to the quality and specification normalising and normalised rolling can be done for all gauges 12.5mm / 0.5” and up with a length restriction of 14m.
ð Ultrasonic testing is subject to the level of Ultrasonic testing required and will be subject to a price extra to be confirmed at the time of placing the order/enquiry.
ð If Anti rust is required, please specify at order placement
1.2 Testing
ð Impact/Charpy testing at an extra of USD10/mt.
ð Through thickness testing on plate is done by an external authority. The cost will be subject to tonnage at a minimum cost of USD80/mt. Maximum gauge is 50mm (2”).
ð Elevated temperature tensile testing will be done by an external authority. The cost will be subject to tonnage at a minimum cost of USD80/mt.
1.3 Shipping
ð The final destination, port of loading and port of discharge should be indicated at the time of order confirmation.
ð Part shipments preferred.
ð Colour coding is also used by the ports for the identification of cargo for certain destinations or for stowing requirements. Therefore the same colour coding is restricted and managed as such and special colour coding requests should be clarified with the mill prior to final order placement.
ð Durban has restricted storage capacity and shipments should be planned for Richards Bay where possible. This is the preferred load port.
ð When shipping through Durban, our Shipping agents should be notified of expected tonnage at least 15 days prior to the first rolling of that contract. Evraz Highveld only has storage facilities in Maydon Wharf and Point.
ð Structural sections are dispatched to the coast as and when it is produced over the estimated 8 week cycle (if applicable) and stacked at the coast prior to shipment.
ð Plate and coil is stored at the works and only dispatched to the coast close to the planned shipment date.
ð All item sizes for a specific customer for a specific destination will be mixed in stacks and in vessel stows, except when explicitly indicated otherwise upon placement of the order. Block stowing should therefore be clearly stipulated upon order placement.
ð Where possible different lots will be stowed separately.
ð No cargo to be shipped on the deck of the vessel.
ð When cargo is to be shipped via barge, the minimum and maximum barge load allowed should be indicated when order is confirmed (this will have an effect on the total quantity tolerance and is needed before the order is processed).
ð A vessel should be nominated as soon as possible, noting the confirmed availability at the coast.
ð The customer will be informed regularly on the full availability of the order at coast
ð All material will be loaded by our nominated shipping agents at the ports
ð On an FOB&S basis, vessels are stemmed according to the following conditions:
· Final tonnage subject to agreed quantity tolerance as per the order.
· C.Q.D (Customary Quick Despatch) loading terms.
· All proposed stows to be subject to our final acceptance, including all proposed changes after initial acceptance. We may not accept hold number 1 for structural steel section stows (subject to stevedore acceptance). No over stowing of plates allowed.
· All dunnaging and securing of stows will be done to our normal agreed standards. All extra requirements to be for vessel’s account.
· All our cargo to be loaded by vessel’s gear. All standby and related costs due to vessel’s gear not being able to lift cargo will be for vessel’s account.
· All “awaiting vessel” standby costs, greater than 2 hours, to be for vessel’s account, once gangs have been booked by vessel’s agents.
· Surveyor and/or EHSV representative on board. All costs incurred by tally agents/stevedores prior to cancellation by the customer to be for the customers account. Cancellation to be notified and confirmed by EHSV 48 hours in advance.
· Supply tolerances will be as per order confirmations.
ð All dunnage used for the stowing of cargo on board the vessel, will be bark free and fumigated with Methyl Bromide and a certificate confirming this can be made available upon request. With effect from 01 July 2005, we are fully compliant with the ISPM 15 legislation.
ð Standard wood dunnage (65mm in thickness) will be used, should thicker dunnage be required this must be advised at the time of placing the enquiry and any extra costs over and above the costs for standard 65mm dunnage will be for customer’s/buyer’s account.
ð NB NOTE: Storage of material at the coast after contract date will be for the Buyers account.
1.4 Outside inspection
This should be specified by the customer at the time of placing the order, indicating the third party to be used, as well as the scope of inspection required. This will be done at an additional cost, subject to the scope of inspection.
1.5 Quality extras
Price extras applicable will be offered on each enquiry.
1.6 Documentation
Standard product descriptions reflected on the packing list, test certificates and invoice can be obtained from Order Services.
The following standard documents are supplied by Evraz Highveld:
ð Packing list is emailed to the customer
ð Test certificate - original posted on our website.
ð Commercial Invoice. Original posted on our website
ð Bills of lading via our forwarding agents - one original and three copies. Note one bill of lading per lot to be supplied. Additional Bills can be supplied at an extra cost of USD10 per set.
ð EUR1 Certification requirements to be submitted with placement of the order.
ð Fumigation Certificates are standard for all countries and are available on request
ð All other documents supplied on request, such as certificate of origin (COO) and forwarders certificate of receipt (FCR)
1.7 Invoicing
ð Invoicing is done on theoretical weight for all prime structural and plate products (7.85 metric ton per cubic metre).
ð Invoicing is done on actual weight on all coil and billet/slab products. Our weighbridges are assized and certified to national standards.
ð Sections / Beams are invoiced as follows:
v All imperial beams and parallel flange channels to BS EN/BS4 - to the first decimal point of the truncated mass.
v All W-sections, to the second decimal point, converting lb./ft to kg/m, with a conversion factor of 1,48817.
2. MILL TEST CERTIFICATES (MTC’S)/MILL INSPECTION CERTIFICATES (v)
2.1 The number of pieces per cast will be specified on Test Certificates. Standard test certificates will be published on the website with information as per the following example taking into account the relevant notes below:
Address to: To whom it may concern (i)
Test certificate No MP: 12345
Page: 1 of 1
Customer order: 67890
Sales order No: 111111/1
Product (ii): PRIME HOT ROLLED STEEL UNIVERSAL BEAMS/COLUMNS ETC
PRIME HOT ROLLED STEEL PLATE
PRIME HOT ROLLED STEEL COIL
Quality: Full specification and grade reflecting the edition
Dimensions: Metric/Imperial as per customer order
Length: Metric/Imperial as per customer order
Cast No X12345 (iii)
Slab No If applicable (plate and coil products)
Chemistry and mechanicals: As per specification/product test result and ladle analysis
Remarks: Explanation of abbreviations used on the MTC
We hereby certify that the material has been tested prior to despatch (iv).
Supply condition
Rolling tolerance
Signature: Metallurgist with outside authority approval where required. Test Certificates are electronically signed.
Date: 01/01/2010
Notes:
i. This can be specified, but at order entry stage only.
ii. Subject to product.
iii. The word “cast number” is standard on the MTC and can not be changed to read “heat number”. Reference can be made to “heat number” in the remarks column of the MTC, i.e. “Heat no. = Cast no.”
iv. This will only appear in the case of sections, plate and coil. Material sold to analysis only, including billets, will not have this remark, but have the following: “Material analysed prior to despatch from mill”.
v. Mill Test Certificate” can be amended as per customer requirement, but this should be advised at order placement.
2.2 If there are any additional requirements such as LC numbers specific product descriptions to be quoted etc, this should be advised at order entry stage. This is to ensure that no manual TC’s have to be printed.
2.3 No additional stamping will take place, except in the case of U-Zeichen, Lloyds, TUV and DNV.
2.4 If no special test certificate requirements have been specified at order entry stage, we will take it that the standard format as per above will apply. In cases where the details are being changed subsequent to order confirmation, we reserve the right to charge an appropriate administration fee.
2.5 Standard test certificates will be made available within 2 days after bill of lading date on our website for a maximum period of 180 days (6 months).
PRODUCT SPECIFIC
SECTIONS
1.1 General
· Evraz Highveld produces the BS4EN as well as the ASTM range of structural sections, but with limitations. (See website for size ranges). Certain WFB sizes are not totally compatible with the BS4 or EN4 range, specifically on the foot weight, and these sizes require separate roll in the mill to produce them. In these cases we will require minimum 500mt to produce each of these sizes. These WFB sizes are 8” x 5.1/4”, 8” x 6.1/2”, 10” x 5.3/4”, 10” x 8”, 12” x 8”, 12” x 6.1/2”. As these sizes are not ordered in South Africa, customers are required to accept any random lengths generated against their ordered tons. A 5% discount will apply to those random lengths. Nb: Documentation for random lengths will show the total meterage despatched per random item. A breakdown of each length within the bundle will not be supplied.
· The Evraz Highveld BS4/ EN4 range is typically produced over an estimated 8 week cycle, but could extend to 10 weeks if the WFB range is incorporated.
· The availability of structural sections to the export market is always subject to mill capacity being available against the size range, noting that domestic orders normally take preference. All orders are subject to mill approval.
1.2 Menu
ð Minimum orders of 300 tons are required for shipment purposes, but can differ for certain destinations unless approved at Contract placement.
ð A minimum item size of 20mt is required per size, foot weight and length. Should this not be possible, fewer different lengths to be ordered to ensure the minimum item sizes are met.
ð Prefer bottom ft/wt per section to not exceed 25% of the total ordered tonnage.
ð Item sizes less than 20mt to be restricted to 5% of the total order by mass, but need to be minimum 10mt items – no items less than this will be accepted. The ultimate foot weight will also play a role in the mill accepting smaller item sizes and small items on heavy foot weights will therefore be subject to mill approval.
ð The following quantity tolerances per item size to apply unless negotiated otherwise in a relevant market/enquiry:
<10mt +100% / -30% or + 1 bundle whichever the greatest
10 – <15mt +50% / -30% or + 1 bundle whichever the greatest
15 – <20mt +35% / -25% or + 1 bundle whichever the greatest
20 – <30mt +25% / -20% or + 1 bundle whichever the greatest
30 – <40mt +20% / -20% or + 1 bundle whichever the greatest
40 – 100mt +10% / -10% or + 1 bundle whichever the greatest
>100 – 150mt +7.5% / -7.5%
>150mt +5% / -5%
ð All exact count orders are subject to mill confirmation. Exact count orders will require a price extra
ð Short lengths of 6m (20’) can be ordered. This should be limited to 5% of the ordered quantity and will be subject to a price extra.
ð The minimum tonnage required to mount a rolling on parallel flange channels (PFC’s) is 300mt per size.
ð A price extra of minimum USD20/ton will apply on all PFC’s.
ð A price extra (negotiated at contract placement) will apply on the following sections (subject to available capacity):
533 x 210 (entire range) W21 x 8 ¼ (entire range)
406 x 140 (entire range) W16 x 5½ (entire range)
305 x 102 (entire range) W12 x 4 (entire range)
Excessive roll wear during the production of the above 4 sizes, limits the size of these rollings to 1000 tons maximum each. Orders may therefore be limited / restricted.
1.3 Marking/bundling
ð Hard stamping of the cast/heat number and nominal foot weight (metric denomination) only.
ð The nominal size (excluding footweights) and Evraz Highveld logo will be rolled into the web of all sections except for angles, which will not have any branding.
ð Stencilling to be limited to bar dimensions, cast/heat number, quality and country of origin.
ð Bundles are colour coded at one end only. The end face is painted. A colour band can also be painted near the end of the bundle, around the bundle. Colour codes are allocated by the mill.
ð Each lot no/customer to take at least one odd bundle per item.
ð Minimum bundle weight of 4mt and maximum of 8mt. Other bundle weights subject to Mill confirmation. Some loose pieces may be supplied.
ð Bundles will not always contain pieces of the same heat/cast number.
ð Bar-coded labels (2) will be affixed to bundles reflecting relevant product, quality, customer and supplier details. Labels will be fixed at opposite ends of the bundles. Metal tags are not used for markings.
ð Click this link to view example of minimum piler sizes and typical bundle size calculations