Brazil is the largest producer and exporter of sugar in the world and in 2020 it should surpass the export volumes in previous years.
Every day our company receives orders and requests for quotations from all over the world. Many new buyers, meaning companies that have never imported sugar from Brazil, are emerging in 2020.
The deficit in production in Thailand and logistical difficulties in India pointed buyers / importers to Brazilian suppliers.
However, every day we serve buyers accustomed to the prices charged by Thailand and India, which are much lower than those charged in Brazil. In fact, Brazil works with prices practiced in the global market. So your main reference source is LSU >>> https://br.investing.com/commodities/london-sugar
SUGAR EXPORTERS IN BRAZIL
In order to prevent your company from falling into the hands of false sellers who use offers with prices much lower than the market, we indicate here some of the most serious companies in this market.
Copersucar
Joining the field and the industry, Copersucar is a global sugar and ethanol trader, with integrated logistics throughout the business chain. Offer sugar in bulk or bagged, refined or raw.
Contact us at: https://www.copersucar.com.br/contato/
Raizen
It is the largest individual exporter of sugar on the international market, bringing energy to people all over the world. They offer practically all types of sugar on the market. From liquid, refined and crystal sugars to organic and VHP (Very High Polarization)
Get in touch >>> https://www.raizen.com.br/contato/fale-conosco
Alvean
Alvean is one of the global leaders in the sugar sector, specializing in the origination, commercialization and trading of raw and white sugar. Offer sugar in bulk or bagged, refined or raw.
Get in touch >>> ww.alvean.com.br/localizacoes/ Good Businehttp://wss!
Care your company should take when importing sugar from Brazil
This is a market full of scammers and if you are not very attentive your company will fall into their hands.
1 – Do not send your quote request to any company you find on the internet.
2 – Make a preliminary study on the price practiced by the market before requesting a quote, so you will have a sense of prices and you will not be deceived by crazy offers.
3 – Do not believe in prices much lower than the market, this is folklore and bait for scammers to attract greedy buyers. Use London Sugar Future – LSU >>> https://br.investing.com/commodities/london-sugar
4 – Do not believe in product photos and crowded warehouses, this is the simplest way to deceive an amateur importer. POP (product proof) is the way to provide ownership of the product
5 – Do not believe in documents that prove past performance, as this does not guarantee that the company is able to honor future commitments, some of these documents can also be forged
6 – For 12-month contracts, Brazilian companies require SBLC contractual guarantee and do not request advance payment,
Payments must be made against shipping documents using the MT 103 financial instrument.
7 – Never issue financial instruments on behalf of third parties (intermediaries, facilitators, brokers)
8 – Never send LOI in an editable file, as it can be used in a mailing way
9 – After sending a LOI to a supplier, demand that he send you an FCO / SCO with all the data so that you can perform a digest.
How to request a quote?
Avoid asking for a quote if your company is not ready to proceed with a negotiation.
To request a quote inform:
What is the type of sugar
The total amount required
The monthly amount
The target price
And check if your company is able and issue the SBLC through a TOP / 50 bank. This is the main reason for not closing the contracts.
PROCEDURES AND TERMS
For buyers, we suggest evaluating the sales procedures before requesting
a quote, in this way, it will be possible to prepare your company to
comply with the procedures within the agreed deadlines.
DO NOT SEND LOI – Most will be discarded when we receive
In order for you to be assertive in your negotiation with us, with
regard to agricultural commodities, carefully follow the items below
First of all: Consult the global market, as it dictates prices.
Query sources:
INVESTING – https://br.investing.com/commodities/us-soybeans
CME GROUP -https://www.cmegroup.com/
ISO SUGAR – International Sugar Organization
Quote for the last thirty days: https://www.isosugar.org/prices.php?
pricerange=last30
1 – Define your demand [ product type, total quantity, port of
destination, target price]
2 – Check if your company is ready to issue a financial instrument
[SBLC or DLC] through one of the 50 largest banks in the world
3 – Request a quote
PROCEDURES:
Request a quote
- After receiving the supply proposal, check if your
company is ableto pay the quoted price and if it can
issue a financial instrument through one of the 50
largest banks in the world, ie the TOP 50.
Check the website below, and see if the bank where
your company has credit is included in the list of TOP
Prime 50 banks: https://accuity.com/resources/bank-
rankings-top-banks-in-the-world/ - 1-BUYER sends ICPO (Corporate Irrevocable
Purchase Order) - Complete buyer information about the issuing or
confirming bank, it is essential to be a TOP 50 bank …
We only accept full BankICPO from the recipient of
the purchase, this document on PDF letterhead,
complete banking and business information of the
purchasing company (all information will be consulted). - 2- Seller issues FCO (Full Corporate Offer).
- 3- The buyer returns the signed and stamped FCO and
sends the BCL - 4- Seller issues Contract Draft. (SPA). After receiving
the FCO approved by the buyer! - 5- The buyer returns the signed, stamped and scanned
Draft Contract by e-mail and it will be considered legal
and official Contract of Purchase and Sale until the
copies are exchanged. - 6- The seller issues a Commercial Invoice.
- 7 The buyer returns the stamped and signed
Commercial Invoice. - 8- The buyer sends the SBLC/ARDLC/DLC OR LC draft
for approval by the seller’s bank or the seller’s
financial
sector. - 9- The seller returns the above bank instrument with
any changes or approvals. - 10- The buyer’s bank issues SBLC/ARDLC/DLC or LC
(MT 700/760) as a guarantee for one month and sends
it to the seller’s bank within 15 working days. The bank
instrument must be revolving, transferable or
Non-Transferable to SBLC only, DLC and LC only
transferable, irrevocable, divisible, operational,
renewable and confirmed by the top 50 bank, with
Payment via MT 103 upon presentation of the
shipping documents (B/L + SGS) by the seller at the
port of origin or port of destination as agreed with Seller. - 11- After the open banking instrument, the seller’s bank
sends to the buyer’s bank a Performance Bond (PB) of
2% within 12 working days in the amount of a
remittance only for contract conditional on payment at
origin, we will issue Proof of Product (POP) within 15
days for any form of payment - 12 The buyer will receive an invitation letter to
accompany the shipment at the port if necessary. - 13- In 35/45 daysthe ship will be loaded, and the loading
can be anticipated. - 14- Payment against the BL and SGS shipping
documents, as per item 11. - 15. We do not send BL or other shipping inspection
certificates from previous customers forsomeone to
review (Data Protection Act). No past performance. - 16. We do not ship physical samples without
exception. - 17. We do not upload photos or videos to avoid
disturbing our suppliers’ privacy and identity.
SUGAR SUPPLY CONTRACTS IN BRAZIL
97% of "buyers" who start trading with us are not ready to buy.
WANT TO BUY, it's not the same as READY TO BUY
If you are an importer of sugar types Icumsa 45, 150,200
or Brown Sugar VHP 600-1200 and need to close a supply
contract with Brazil, then you need to be that.
For every 100 possible buyers, only 3% are really in a
position to buy, so in order not to waste time on both
sides and getfrustrated withmistaken attempts to buy, it is
essential that you prepare your company before starting
a negotiation.
SUGAR SUPPLIERS IN BRAZIL
We cannot answer or talk about the procedures of the
other sugar suppliers / exporters in Brazil, but regarding
the six sellers represented by our company, we affirm that
none of them accepts to negotiate without contractual
guarantee.
The contractual guarantee required in this case is SBLC.
This is the requirement that removes 97% of buyers from
the negotiating table.
Mainly because this guarantee needs to be issued by one
of the largest banks in the world, namely a TOP25.
SBLC AND MT103 CONTRACTUAL WARRANTY
Sugar supply contracts negotiated with us require:
Payment terms: SBLC with value equivalent to one month
of supply andmaturity of 1 year and 1 day, irrevocable,
unconditional, transferable and divisible. Issued by the
bank TOP 25 and payment for boarding the MT 103
About the SBLC Warranty
It is useless to issue this guarantee through a broker or a
regional bank, even if this is the largest bank in your
country.
If it is not a TOP 25, SBLC will not be accepted.
Many would-be buyers get stressed, look for a thousand
alternatives, take months, sometimes even a year
negotiating with gangs in search of the SBLC and nothing,
they end up frustrated in the negotiation.
How much does it cost to contract the SBLC contractual
guarantee?
Usually 2% of the guaranteed amount
See example: 300,000 mt / year contract being 25,000 x 12
months
Negotiated prices: USD 345.00 per mt
One month of supply 25,000 x USD 345.00 per mt = USD 8,625,000
Usually the cost of issuing the SBLC is 2% of this guaranteed
amount, so in this example the cost of the guarantee
would be USD 175,500
The guarantee is automatically renewed monthly for a
period of12 months.
We emphasize that the contractual guarantee is not the
financial instrument used for payment and it will only be
discounted if the buyer does not make the payment by
using MT103
SWIFT MT103
A MT103 SWIFT is used by the bank when its customers wish to
make a payment to customers of another bank abroad. The
transfer is only made after the buyer's bank receives the shipping
documents sent by the supplier.
sugar, in this case one of the six tradings we represent.
If the MT103 is not issued, the supplier can request that the
guarantee be used.
BILATERAL WARRANTIES
Sugar supply contracts are guaranteed by both parties, so the
seller must also issue a 2% Perfomance Bond in the same amount
of USD 175,500 in favor of the buyer.
If the terms of the contract are not fulfilled, the buyer may request
reimbursement.
Performance Bond is a type of guarantee insurance that aims to
guarantee that a contract will be fulfilled as agreed. This contract is
made through an insurance company, which monitors the progress
of the works to verify that they are proceeding as they should.
Before starting a transaction, look for a TOP 25 bank and ask for guidance on the acquisition of an SBLC, required documents, issuing cost, issuing time, etc. This way, your company will be able to prepare to start trading.
We hope we helped with this information.
97% of "buyers" who start trading with Mello Commodity are not ready to buy.
WANT TO BUY, it's not the same as READY TO BUY
If you are an importer of sugar types Icumsa 45, 150,200 or Brown Sugar VHP 600-1200 and need to close a supply contract with Brazil, then you need to be that.
For every 100 possible buyers, only 3% are really in a position to buy, so in order not to waste time on both sides and get frustrated with mistaken attempts to buy, it is essential that you prepare your company before starting a negotiation.
