FERRO-ALLOYS GUIDELINES

FOR DELIVERIES & RECEPTIONS (bulk)

CONTENT

QUALITY ................................................................ 5

SAMPLING .......................................................... 6

CHEMISTRY ...................................................... 7

SIZING .................................................................. 10

LOGISTICS ............................................ 12

In order to ensure a smooth delivery process between

the seller (or its representative*) and the buyer (or its

representative*), the following guidelines provide a

framework enabling both parties to be eficient and save

time by sharing the same methods to understand and

address problems which can arise.

Ferro-alloys• Ferro-alloys are produced from heats of smelters & furnaces and crushed

in lots.

• Ferro-alloys are not pure metals; therefore, the chemistry speciication is

given with a min-max range.

• The same ferro-alloy can be sold with different sizes of granules/shots

(example: 10-50mm, …) given with a distribution pattern and a percentage

of ines or over/under sizes.

• Sellers and buyers are expected to follow the best practices related to

deliveries, among which ISO standards, and more particularly ISO 4552,

3713 and speciically 5445 for ferro-silicon alloys.

Contract• The contract between the seller and the buyer will provide the base frame

and provisions that will govern the operations. It is recommended that the

below guidelines are wholly or partly included in the contract. As this may

not always be possible, these guidelines will provide for the seller and the

buyer the best practices to smoothly and amicably solve issues which can

arise upon delivery.

* Note: In the document, the word “seller” is to be understood as “seller (or its representative)”

and the word “buyer” is to be understood as “buyer (or its representative)”.

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Quality

• In case of apparent non-conformity related to the sizing or to weight

differences (§ Logistics refers to), the buyer (or its representative) shall

make a visual inspection and weighing at the time of the delivery and, if

need be, give a substantiated notice in writing to the carrier at the time

of reception of the goods, or at the latest within a range from 3 to 5

calendar days, with copy to the seller.

• In case of non-conformity related to chemistry, the buyer (or its

representative) shall give a substantiated notice in writing to the seller as

soon as possible and at the latest within 30 calendar days after delivery.

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6

Sampling

1. Using the coherent sampling method• The sampling method which has been used by both parties (seller

and buyer) needs to be clearly stated and communicated between

the seller and the buyer.

• Any sampling method will induce a margin of error, which both

parties will communicate to each other.

2. The ISO standard• The ISO standards (and more particularly ISO 4552 & 3713) set the

sampling & sample preparation methods.

3. Sampling practice• The sampling is conducted in accordance with the best possible

practice, the ISO methods should be used as the constant reference,

and especially ISO 3713. Parties shall keep samples for possible

cross-checks and umpires.

• In case the delivery of one lot is made by several trucks or containers,

it is understood that the sampling must be conducted on the whole

lot delivered, and not on one single truck or container.

• In case the delivery is made by vessel or barge in bulk, the whole

shipment will be sampled.

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Chemistry

The determination of chemistry requires a proper sampling method (see

above).

1. ChemistryFerro-alloys are sold with a chemistry speciication, being understood

that each ferro-alloy will show main elements and trace elements, and the

acceptable margins of error will differ between these 2 types of elements.

a. For the main elements of ferro-alloys the acceptable deviation

limit is (unless otherwise speciied in the contract):

i. Ferro-manganese: Mn 0.5%

ii. Ferro-silico-manganese: Mn & Si 0.5%

iii. Ferro-silicon: Si 0.5%

iv. Ferro-chromium: Cr 0.5%

v. Ferro-silico-calcium: Si 0.5%

b. For the main elements of ferro-alloys or assimilated

products (e.g. alloy pig iron) not listed here-above, both parties will

communicate about their respective analysis methods and endeavor

to reach a mutual agreement.

c. For the trace elements the acceptable deviation limit is not

applicable as such. Both parties will communicate the margins of error

of their respective analysis methods, and the acceptable deviation will

be related to the highest margin of error implied by the sampling and

analysis method.

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2. Sampling & chemistry resultsIn case:

• Both samplings from the seller and the buyer show deviations in

chemistry analysis in excess of the above mentioned acceptable

limits or contractually accepted tolerance as the case may be.

or

• Differences are higher than the cut-off value implied by the highest

margin of error of the undertaken sampling methods used.

Parties will cross-check their respective result, and should signiicant

deviation occur, endeavor to reach a mutual agreement on data.

If no agreement is found, parties will appoint a mutually agreed umpire

which will conduct the proper samplings and studies (analysis for

chemistry or distribution of sizes on the sample collected by the umpire):

the cost will be borne by the party with the results furthest to those of the

umpire (§ 3 below refers).

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3. The analysis methods

a. The analysis methods which have been used by both parties (seller

and buyer) need to be clearly stated and communicated between the

seller and the buyer. Both parties will keep suficient samples used for

analysis: one for the other party and one for the surveyor or the umpire

which may be called in.

Any analysis method will induce a margin of error which both parties will

communicate to each other.

b. Cases of deviation

• Analysis from the seller and/or the buyer show deviations in chemistry

analysis distribution in excess of the above referred limits or accepted

tolerance.

or

• Differences are higher than the cut-off value implied by the highest

margin of error of the analysis methods used.

The steps described in 3.c below will apply.

c. Processing excess deviation

The good practice is that the buyer keeps the delivery/lot in quarantine to

conduct the operations as hereunder described.

i. In a irst phase, the buyer is requested to detail the analysis

method used and to send a sample to the seller in order to cross

check the results between both parties.

The parties will endeavor to reach an amicable settlement.

ii. In a second phase, if no amicable settlement is reached, parties

will appoint a mutually agreed umpire which will conduct the

proper sampling (on the quarantine delivery/lot), and analysis for

chemistry: the cost will be borne by the party with the results

furthest to those of the umpire.

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Sizing

The determination of sizing patterns requires a proper sampling method.

The sampling must be conducted at the named place of destination

(Incoterms 2010), as under size product will be generated in case the

product is handled one or several times after reception.

The sampling must be properly made & conducted during the whole

supply i.e. made on several trucks or containers, or made from the

beginning till the end of the discharge operations for vessels or barges.

1. Sampling & sizing resultsIn case:

• Sampling from the seller and/or the buyer show deviations in sizing

distribution in excess of the contracted tolerance.

or

• Differences are higher than the cut-off value implied by the highest

margin of error for the sampling methods used.

Parties will cross-check their respective result, and should a signiicant

deviation occur, endeavour to reach a mutual agreement on data.

If no agreement is found, parties will appoint a mutually agreed umpire

which will conduct the proper samplings and studies (analysis for

chemistry or distribution of sizes) cost will be borne by the party with the

results furthest to those of the umpire (§ 3 below refers).

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2. Possible deviations

a. Product under and/or over size

Ferro-alloys are sold with a percentage of product being under and/or

over size: it does not state the values of each of over or under size (unless

speciically requested).

b. Under size

Such under size product is commonly referred to as “ines”. Fines

result mechanically from the crushing production process and they are

screened, and they also result from the self-abrasive contacts of the ferro-

alloys granules or shots in the various handlings and transport phases.

c. Over size

Over size product also mechanically results from the crushing and

screening process. It will not result from the various handlings.

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Logistics

Weight differenceThe weights and quantities of the goods which are delivered and

consequently invoiced will be those determined by the seller or on its

behalf upon delivery according to the determined Incoterm contractually

stipulated and will be considered as inal - unless otherwise contractually

stipulated (in case of survey for instance).

A deviation limit (or weight tolerance or acceptable loss in transit)

of +/- 0.5% for deliveries by tipper truck or containers or vessel or

barge between the seller and buyer weights between their respective

weighbrigdes will be admitted and in such case, the seller’s weight will

be inal, unless otherwise contractually stipulated.

This 0.5% relects also the percentage which insurance companies

would accept for claims.

In case the buyer or its representative inds a difference with the seller’s

declared weight in excess of the deviation limit of +/- 0.5%, and the

seller’s weight is not inal according to the contract, both parties will liaise

to ensure the following points:

1. To check the weighbridges of both parties and to produce the

appropriate & valid certiicates issued by the control authorities

evidencing the conformity & speciications of their respective

weighbridges.

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2. To sum up all weight differences - negative & positive - in case of a

delivery made by several trucks or containers between the seller’s and

buyer’s respective weights by comparing the respective weight tickets

at loading and unloading.

a. In case this sum is below 0.5% both parties will consider this

stays within the acceptable weight tolerance and the seller’s

weight will be kept as is.

b. In case the sum is above 0.5%, the parties are suggested to

mutually agree upon one of the 2 following options.

i. To reach an amicable settlement

or

ii. To have the lot reweighed by a mutually agreed third

party weighbridge the result of which will be considered

inal. The party with the weight furthest to the third party

weight will bear all costs related to this operation.

3. Important remark

Special attention is to be paid to cross check the tare weight of ) trucks

and trailers; ) railcars; ) containers which may be inaccurate and

therefore entails wrong determinations of products weights. This is more

specially the case of railcars and containers for which repairs may have

modiied the initial tare weights.

Time allowance for operations (loading &

unloading) of trucks & containersThe seller will ensure coherence between the reception hours &

constraints at the buyers’ premises and the instructions given to the

transport operator (trucking company, forwarder, shipping agent, …): this

will reduce misunderstandings and possible problems & related costs.

The seller (or shipper) and the buyer commit to perform within 2 hours the

loading and unloading operations (including appropriate documentation)

from the moment the truck or container checks in and the moment it

checks out the gate of the premises (plant, warehouse, …).

The seller (or shipper) and the buyer commit not to keep the truck or

container waiting outside the gates of their facilities.

This applies if not otherwise stipulated in the contract.

Cleaning of containers & railcarsWhen receiving containers and railcars, and within the time allowance

stated above, it is the responsibility of the buyer to empty and clean the

container or railcar : it must be handed over back to the shipping line

or railway company without any product (ines, dust, granules, …) or

packing equipment (pallets, big bags, …) left inside.

Should this happen and be notiied by the shipping line or railway

company or their representative to the seller, the seller will in turn inform

the buyer: in case cleaning expenses are invoiced to the seller by the

shipping line or railway company, these will be passed on to the buyer.

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EUROALLIAGES is the European Association of ferro-alloys and

silicon producers.

EUROALLIAGES represents about 95% of ferro-alloys and silicon

production in Europe.

It represents producers in the European Economic Area (full members),

as well as producers in countries having signed an Association

Agreement with the European Union (associate members).

The total membership includes 23 companies, operating nearly

50 plants in 14 different countries, with 8000 employees. The total

turnover of the members is around 2 billion euros.

EUROALLIAGES’ objective is to promote safe, environmental-friendly

and competitive production of ferro-alloys and silicon in Europe.

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12, avenue de Broqueville

1150 Brussels

Belgium

euroalliages@euroalliages.be

www.euroalliages.com