Export of Iron ore Fines from India

Opportunity Snapshot

  • Country: India India
  • Industry: Wholesales Trade
  • Stage: Start-up
  • Investment size: $6,000,000 / min. $4,000,000

Investment Opportunity

Supplying iron ore fines to chinese steel mills from India. Target quantity is 100000 mts/month. Minimum ship load:20000 mts port specific, 40000 mts standard. Average gross profit per mt---usd 10. Fund is required for procurement of materials,logistics from mines to port,fob and sea freight.

Supply of 40k mts iron ore fines from india to china.
Grade:63.5% fe rejection at 62.5% fe.
Term of sale: fob ,execution period: 60 days max.
Approximate current buyer's price: 155 usd
Approximate current net margin: 15 usd.
% of profit sharing: 50:50 basis (investor's margin usd 7)
For 40000 mt cargo return assured is usd 280000
Investment: usd 5800000 investment .period : 60 days.
Buyer shall sign the contract with the investor being facilitated by our company and will receive direct payment or any suitable structuring to secure funders's investment and return.

1.Payment is 100% value payable through lc on post shipment realization pay claus. 2% PBG is required in favor of the buyer before receipt of the lc.inr lc is available and preferred from top 10 leading world banks.

Our funding requirement can not be in lc back to back as the procurement companies deals in demand draft from banks in inr only.

Our company need to be funded to complete the fob supplies ,the fund can be directly placed to us or to the sources like mine owners,logistic operators, stevedores and towards taxes and duties.

We are comfortable with proper legal arrangement .

The project can take off once funding resources are in place.all other coordinates are ready for the transaction.

Investors can contact us on Merar for more information.

Competitive Advantage

# The margin usd 7 per mt varies maximum at +/- 10% level
# Multiple shipments can be planned from different ports and for different grades.
# Prefer investors from china who understands the dynamics of this trade.
# Focusing on fob sale for making quick roll over of the funds
# Not taking market fluctuation for higher return as each and every transaction shall be based on lc with a fixed price and procurement to be go simultaneously for the contract qty.to curb rate fluctuations on shipment to shipment basis.

Rationale for the deal

My advantage is being local person by birth from the area where high grade iron ore mines are located from india and materials get exported from this area with excellent relationships with all input variables are concerned.

My idea of making money in ethical sharing basis on level playing partnerships or joint ventures.

Companies having access to overseas funding are doing well making multiple shipments from different ports.

Use of financing

Payment towards purchase of iron ore fines
Payment towards logistic expenses.
Payment towards export duty and stevedoring cost.
In a trading platform fund requirement and repayment schedule on a shipment to shipment basis and to be aligned appropriately for multiple shipments.

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