PSM to sign new agreements for materials sale: all current contracts being cancelled

Pakistan Steel has decided to cancel all Pakistan Steel products selling agreements and sign new sale contracts. It has been decided that all running contracts, signed before January 3, 2011, will be closed by January 31, 2011.
The Price Fixation/Review Committee has approved new selling arrangements for implementation. Under old contract, Pakistan Steel will issue material up to January 21, 2011. After passing that date no further material will be issued. In case some balance remains with Pakistan Steel on the date for any reason, a new contract of balance quantity will be signed before February 1, 2011 as per new selling arrangements of Pakistan Steel.
As per approved procedure, Pakistan Steel will enter into contracts with customers as per standard terms and conditions of sale. The customers are required to deposit security amount for the entire quantity of the contract. This security amount will be refunded/adjusted against their next contract upon completion of the contract.
For HR/CR/GP/Billet: a) for quantities 5000 MT and above 1 percent of the contract value, for quantities below 5000 MT 2 percent of the contract value, Coke/Pig Iron/By Products 1 percent of the contract value and slag 5 percent of the contract value. Minimum quantity for placing order against a contract will be as under:

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Product                Trader          Consumer

HR Products           300 MTN           500 MTN

CR & Galv. Prod.      100 MTN           300 MTN

Billets & Blooms      100 MTN           500 MTN

Coke & Bye-prod.      100 MTN           500 MTN

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Pakistan Steel will consider entering into running/long-term contracts with its customers against large quantities for minimum period of six (6) months. Such Running/ Long Term Contracts will be for sale of minimum quantity of 20,000 M Ton Hot Rolled products and 20,000 M/Ton M S Billets/Blooms/Slabs for a period of 12 (twelve) calendar months: Steel Mill will pay one percent dealer''s commission to registered consumers/trader/dealer on every sale, except tender sale.
Copyright Business Recorder, 2011