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Question 2: How does the Mill scale sourcing work in Egypt??

Mill scale pile
Sourcing Mill scale from Egypt

In this series of articles, we provide a walkthrough for buying Mill scale and similar wastes from Egypt for shipping and export to recycling markets. You can understand how the wastes market operates, The supply chain arrangement including, ports, shipping lines, transportation, and customs brokers.

Question 2: How does the Mill scale sourcing work in Egypt??

Answer: The wastes market in Egypt can be a little complicated to understand as it’s based on relations, however as a general rule be prepared to use 2 or 3 people to get cargo from 1 source, to make it easier I will explain it under several titles:

The main parties of the chain:

The chain in Egypt has the following players Steel mill, the trader, the broker, and sometimes the transporter.

Spot VS. Contract:

Cargo can be purchased under an annual contract or on a spot basis.

The Delivery:

When you buy from a factory you have to get it on EXW or FOT (free on the truck; Cargo + loading fees) while when you buy through traders it's mostly delivered to your side (DAP).

Payment and settlement:

The general market rule for “payment then pickup” unless you have your own contract with factories and this depends on the initial tender terms. Another thing when you are well reputed, you can pick up and pay later.

This raises the important question; what is the tactic??? Well, this will be subject to your sourcing plan, goals, and market condition. For example, if you are working on a fast shot that you need to aggregate your cargo fast, you will have to deal with local traders and brokers at the same time, on the other hand, if you are in a slow time you can sign a contract with a factory and just make sure to move your allocation on regular basis. Also, the collection scale matters, if you are buying for a small container shipment you don’t need to enter with a commitment with a factory, however, if you are dealing with big-scale bulk sailing better to have more control over your sources. Another important aspect is the quality you are aiming for. Not all steel factories provide the same quality levels due to the different raw material used and storage conditions, generally integrated factories offered us the highest Fe and lowest Silica levels on the opposite to factories from the mid-range products, at the same time the prices also varied.

The thing to keep in mind that word of mouth plays a big role in the market, especially when you buy cargo on spot basis if the competition is high and the guys at some factory heard that other buyer pays more, especially in the hot market times you will be asked to pay more immediately.

The subject has much more details, however, this can give general guidelines for newcomers.

For further information, UGS Team can assist. Drop us an email:

#Sourcing #wastesmanagement #recycling #logistics #puchasing #buying #Millscale #ironore

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