FERRO-ALLOYS GUIDELINES - euroalliages.com
Transcript of FERRO-ALLOYS GUIDELINES - euroalliages.com
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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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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