How our commodity trading process works
From your first enquiry to shipment, each step is agreed in writing. This is the commodity order process we follow; details vary by product and are set out in each contract.
Enquiry
You send the product, grade, quantity, packaging, origin, destination and delivery terms through our quote form.
Review
Our trading team reviews the specification and checks supply options.
Letter of Intent
Where the product requires it (for example urea, coal and petroleum), the end buyer issues an LOI.
Offer
We issue a Full Corporate Offer (FCO), or the refinery or supplier offer, on the basis of your request.
Contract
Commercial terms are negotiated and recorded in a sales and purchase agreement (SPA).
Payment instrument
Payment is secured by 100% DLC or SBLC; petroleum transactions use secured procedures with payment at destination.
Inspection and verification
SGS carries out preliminary and loading inspections, and suppliers can be visited after the SPA and draft LC (MT760).
Shipment
The cargo is shipped with our logistics partners on the agreed delivery terms.
Frequently asked questions
Why do you need an LOI before an offer?
For products such as urea, coal and petroleum, suppliers issue offers only against a Letter of Intent from the end buyer, following the standard international procedure.
Can I visit the supplier?
Yes. Factories and suppliers can be visited once the SPA is signed and the draft LC (MT760) has been received.
Does the process differ by product?
Yes. Fertilizer, agricultural, coal and petroleum transactions follow the same broad steps, but documents, inspection and payment terms are set per product and per contract.
Start with an enquiry
Tell us what you need. We will tell you whether we can supply and what the next step is.