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A Miniratna Category - I PSU

Under the administrative control of

Ministry of Steel, Government of India

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Marketing Services

Our revenue from trading line of business 80.96%, 81.01%, 70.68% and 85.00% of our total revenue for half year period ended on September 30, 2018, Fiscal 2018, 2017 and 2016 respectively. We import and domestically source bulk industrial raw materials on behalf of end users and intermediate traders. Secondary steel producers and the petrochemical industry make up the majority of our customer base. The total volume of business under our trading vertical for half year period ended on September 30, 2018, FY 2018, 2017 and 2016 is as under:

(₹ in million)

As at September 30, 2018
FY 2018
FY 2017
FY 2016
Imported materials
Indigenous materials
Total trading volume

We mainly source, purchase, and sell, on behalf of our clients the following:

Our Company does not have any warehouse of its own. Materials procured and sold to customers are pledged back to us as security towards payment. Materials are released on payment. For keeping the pledged material procured on behalf of customers, an area inside the plant of customer is designated as stockyard of the company and the material is kept in that stockyard under the supervision of a custodian. The operational modalities of the stockyard are governed by tripartite agreement signed between our Company, the customer and the custodian who is appointed for the warehouse management services. Our Company pays a token fee to the customer for the use of stockyard and custodian charges are paid by our Company which is subsequently recovered from the customer.

Essentially, we serve as an enabler and connector for various industries to procure raw materials. Trading done on a purchase-sale mode, substantially adds to our turnover.

There are different business models we use, depending on the customer, the materials, and other factors. The brief of each of the business model under Trading vertical is as under:

1. Cash-and-Carry Model (SUSPENDED)

2. 110% Bank Guarantee Backed Procurement (Continued)

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3. Associate Supplier Model (SUSPENDED)

This Division largely undertakes import and export of carbon steel melting scrap, finished steel/coal/coke as also other nontraditional items like SKO, Naptha etc. The total volume of business in the fiscal 2010-2011 was around Rs. 5933.02 Crore, out of which Procurement of Imported materials is of Rs. 2580.77 Crore and Procurement of Indigenous materials is of 3352.25 Crore. MSTC with its network of 10 offices all over India, and its policy of operating on a very small margin is in a unique position to help international commodity traders, establishes a market and Clientele on a long term basis. With its experience and expertise in foreign trade, it is also in a position to help Indian user of imported raw material to procure such material on a sustained basis with most economic prices. This group looks after sourcing, purchase and sales of industrial raw materials like HMS, LAM Coke, HR Coil, Naphtha etc on behalf of organizations like Essar Steels, Ispat Industries, HPL, DPL etc. both from international and domestic markets. In addition, a beginning has been made in export, first with Castor oil and then with iron ore.

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Import-Export Services

MSTC (A Govt. of India Enterprise) - a Mini Ratna PSU under Ministry of Steel is India's one of the largest Trading Houses. It's import division imports Iron and Steel scrap, DRI, Coal, Coke, Non-Ferrous metals, Steel items, Pig Iron, Non Ferrous scrap etc.


MSTC imports following industrial raw material as per international specifications:-

  • IRON BEARING MATERIALS like Scrap, DR Pellets, DRI, Calibrated Lump Ore, HBI etc.
  • FINISHED AND SEMI-FINISHED STEEL ITEMS like HR Coil, CR Coil, Wire Rods, Billets, Concast Slabs, etc.
  • NON-FERROUS MATERIALS like Copper scrap and Copper ingots etc.
  • Any other industrial raw material, preferably bulk in nature or high values as per the requirement of Customer.

Customers who desire to import any new item apart from the above list of items can also contact MSTC and the proposal will be analysed objectively.


Imports of all Industrial Raw Materials and Finished and semi finished good are centralized at corporate office in Kolkata and the sales are effected through various regional and branch offices located all over India.


Imports are undertaken by MSTC against the firm advance indents of the prospective buyer(s) and/or accumulated demand of the item for a particular port.MSTC imports materials generally on CIF/C&F basis main Indian ports.

The purchase price is usually based on the L1 rate received against the Global Tender floated by MSTC from time to time. In case of Non-Ferrous materials the price is based on the LME cash settlement price plus premium.

The price obtained is intimated to the customer and the deal is finalized with the consent of the customer along with payment of mutually acceptable advance/ security Deposit by the customer to MSTC. The entire operation is based on actual costs plus a fixed MARK-UP charged by MSTC and on back to back basis.

In case, the customer themselves have good offer or have any long-term contract with the foreign supplier, but desires to route the same through MSTC for financial arrangements, the same may also considered based on the merit of the case.


MSTC sources various materials from reputed producers and traders of each item. MSTC has connections with may foreign suppliers. In the international market, MSTC enjoys a place of repute and is highly regarded as a bona fide purchaser of Scrap and industrial raw materials.


MSTC imports quality material conforming to international specifications viz. ISRI, ASTM etc. Most Customers of MSTC are institutional buyers who have stringent quality norms for accepting the raw materials. Quality Certificate from independent inspection agency of repute like SGS, Alex Stewart etc regarding quality and quantity is essentially a part of MSTC's purchase contract.


Customers have the following options for purchase:

  • High Seas basis against full payment:
  • High Seas basis against deferred payment and lifting on cash and carry basis. [facilitates cash flow of customers]
  • Ex-bond basis: [facilitates small customer]

The details of the above modes of sale will be explained at the time of entering the MOA with the customer.

If required, MSTC imports metals with split Bill of Lading to cater to the need of small customers who want to buy on high-seas basis.

MSTC is quite flexible in various terms & conditions. Any constructive proposal from the buyer is analyzed objectively in the interest of growth of business.


Cash and Carry Facility: In case of bulk purchase, MSTC also provides an unique facility of cash and carry in which case certain formalities need to be observed till the material is ultimately lifted on piecemeal basis on payment to MSTC. Thus the customer remains sure of the inventory without 100% cash/L/c limit blockage and is a relief on the customer's working capital requirement. However this facility is given only for customers whose credential is acceptable to MSTC.

Market Information:Support services in the form of market intelligence are always provided to the customers.

High credibility: MSTC has always lived up to its commitments because of which it have a very high credibility among the international suppliers.

Professionally Trained Manpower: An expert team of professionals with a dedicated product portfolio handles MSTC's import.

Usance L/C : MSTC can establish Usance L/C with LIBOR based interest rate prevailing in the International market for 90 to 120 days.

Turnover based discount : Special incentives in the form of discounts in the mark-up are also given to regular customers based on yearly turnover of business through MSTC.


STEP 1: Producers/Actual users desiring to import through MSTC any particular item may please apply to MSTC with the information/documents as mentioned in Annexure 1.

Step 2: The proposal of the customer will be objectively studied by MSTC officials. In case the proposal is accepted the customer will be called for signing of Memorandum of Agreement for import, which will contain detail mode of operation.

Step 3: After signing of the agreement the import will undertaken based on the indent of the customer and other terms of the MOA.


In case any further information is required, please contact Corporate Office at Kolkata and/or Regional and Branch Offices.

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