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“ The value of a product is different to its worth”

FTNX SOURCING

FTNX spends a great deal of time in negotiating and sourcing products from leading suppliers before offering such goods to potential end buyers; in where English language must apply. While single container loads and small NBC single shipments offer a greater potential to secure many more products, FTNX  has no interest to trade in such small lots, accordingly for purpose understanding, FTNX is not interested in doing business in contact values under 1 million dollars and prefers to buy and sell large NBC or even FCL contracts, where a revolving basis is apparent. We seek from suppliers ‘lots,’ that is , we seek from a supplier and assurance  of supply  of goods  that they are able to produce and delivery in one year or years. Once an assurance of supply is served, FTNX then contacts the port of loading to formally find out loading port depths. If a supplier is offering FTNX, as an example;  1 million MT of white cane sugar as a ‘lot,’ and the port of landing allows for 100,000  MT carriers to berth, then FTNX makes an offer to buy then sell such goods  at a revolving basis of 80,000 MT per month, for 12 months at FOB Incoterms.etc.etc. If an end buyer  requires added carriage at CFR or CIF incoterms and the supplier is unable to later offer FTNX as much, FTNX arranges for carriage as well. The said sugar may carry an international indexed value of lets say US$ 700.00 per MT at FOB, but since FTNX is considering transacting  on very large lots, what is it ‘worth’ to a supplier, to secure added sales of 1 million MT of sugar? In other words, what discount will FTNX secure  from the supplier as an incentive to buy such a large lot of an export ready  product  at FAS or FOB incoterms. The discount FTNX receives  when buying such goods, serves an an incentive to potential end buyer FTNX is dealing with, as any discounts secured, over 90% of such a discount  is for the benefit of our end buyer. If a much wanted product  has no discount, and is difficult to secure in where the supplier also wants  a premium added to the international price basis, then FTNX will also consider such sought after goods as well. FTNX only transacts in future offers and not on the ’SPOT’ offer. This means if a farmer wants to test a price basis for crops due to be harvested in 6 months; the farmer makes an offer to FTNX  on the price basis sought for ‘most or the whole crop’  to test whether the farmer can get a better gate  price is able to be secured  early. The farmer will still need to deliver the goods at FAS, the expenses of such are added to the ‘gate’ (EXW) price sought.


PRICE BASIS 

FTNX will buy goods from a supplier using the following kind of formulations, unless agreed upon differently. If an Index/exchange is used e.g; ‘LME’ to formulate such prices, then the index must be accessible to the public on  the internet. The following examples are offered for the supplier to consider prior to assuring supply. A worthy note; the  formula used when buying  goods  from a supplier may be very different when selling goods to our end buyer as both aspects are independent trading aspects. Other aspects  that the supplier needs to consider is about  ensuring the first delivery date falls be on or before  the 15th day of a given month. FTNX  has found that this date  will not cause issues with payment and delivery, when industry world wide slows down during the Christian festive season of Christmas–and later New year celebrations. In all cases, the assurance or offer made by the supplier to FTNX will be considered intently on the conditions certain  aspect to do with payments and delivery remains  within the perspective of FTNX orthodox trading premise.


Example (1): Copper Cathodes  Price basis, as per LME price basis  at 30 days, less 10% discount at  FOB as taken monthly on the 15th day of the month 12.01 PM or before AEST

Example (2): Copper Cathodes  Price basis, as per LME price basis  at 30 days, plus a premium of 6.5%  at  FOB as taken monthly on the 15th day of the month 12.01 PM or before AEST

Example (3): Copper Cathodes  Fixed Price basis, US$ 8000.00 per MT  FOB as delivered  monthly on the 15th day of the month 12.01 PM or before AEST


In (1)  and (2) no matter what the price is during the delivery period, the price applies as taken  per LME listing, as taken on the  e.g: 15th day of the month.

In (3) the supplier is implying that no matter if prices rise of fall in any given month, one fixed price is applied for the life of the contract.


FTNX has to sign a contract and lodge its financial instrument to pay for goods, within 7 days for a delivery due 30 days after the contract signing date. This an important matter, as the finance to buy goods has to be secured  some time before the contract  with the supplier is signed. FTNX is unable to act of goods being priced as an average  on the day; one day after, and one day before loading, as we need a value to be able to lodge a financial instrument,  long before loading commences.To effectively ensure that no issues are apparent with the financial instrument once its lodged,  the value of the financial instrument is opened at the value of goods assessed on the day the contract is signed. The DLC to pay for goods is lodged with such a value. If the price of goods have fallen in value at loading time, the supplier records a credit  to favour FTNX, like wise if the price rise exceeds the tolerance  factor  of 5.0% attached to the financial instrument, FTNX owns the supplier the difference at such a time. To save added bank charges and fees, amendments are only applied for, if after, in sets of 3 months, credits and debits cannot be rationalised, FTNX will then apply for amendments to  the credit at such a time. In all cases FTNX will examine what the supplier is seeking in the first instance and if FTNX is unable to buy at the suppliers terms and conditions, the offer  made to FTNX is rejected, in where a counteroffer will be advised for the supplier to consider intently. In doing as much, a middle ground can now be  established, where some of the original aspect required by FTNX  and the Supplier can be met, while others cannot.    


PRODUCTS SOURCED BY FTNX 2024 

As a guiding insight, the following are just some of the highly ‘wanted’ products FTNX  sources annually. FTNX will consider all worthy products on offer on a revolving basis.All products even those listed on main exchanges, have tolerance factors.The higher the quality the higher the price usually applies.


  1. Copper Cathodes: Industrial grade sheets or  sheets classified as Grade “A”  under LME listing. Minimum yearly lot sought  6000 MT  FCL FCA Incoterms  
  2. White Cane Sugar:  Bearing  44 ICUMSA up to 50 ICUMSA  Grade 50 Kg up to Jumbo bags. 6000 MT lots FCL or; up to  6 MMT NBC lot as taken from a co-operative ( or USINA) FAS for FOB 3-5 year contract
  3. ULS Diesel: 10 PPM bearing a Cetane number value of 50 or more or; bearing a Cetane number under 46  3-5 MMT lots – 3 up to 5 year contract. JET FUEL A1 also considered  yearly lot.
  4. Low Sulphur/Ash Black Coal : 5-7 year contract: Supplier must be able to book land at  port of delivery to initiate a clean stockpile of 150,000 MT including bedding. A port that is able to  berth VLBC ships  bearing load  120-140,000  MT NBC
  5. All Agricultural Products:Including processed products such as flour  
  6. Chemicals: Sulphur/Urea and Caustic soda considered. 
  7. Crude Oil: Only sweet crude oil serviced at 100,000 MT or more per month - 8 year contract  at FOB. LNG Gas at CIF  60- 80,000 MT deliverable rate 10  year contract  considered.
  8. Scrap Metal: HMS 1 and 2  considered as well as  used aluminium cans outright
  9. Lead, Zinc and Aluminium Ingots considered
  10. All types of ore/rare minerals considered: 5 year contract.
  11. Large Sophisticated Machinery: FTNX will consider  sourcing large machinery like Diesel Generating units, Wind Turbines,  Industrial/ Farm machinery, Aircraft etc..  



OTHER SERVICES

FTNX is able to be tenured and an agent to supervise/advise upon a transaction being conducted among principals or serve an opinion to laws firm world wide in criminal cases involving aspect of  international trade.money laundering and proceeds of crime. FTNX is also involved in advising upon and creating investment projects which will be officially declared when each project is  completed. Current projects as already stated earlier (a) ZEHEDBIKE: ZERO EMISSIONS HUMAN ENERGY DEVICE- BIKE (Progress report about the ZBIKE advised in FTNX Library in 2024). FTNX is also able to consider a ‘counter-trade’ where one product is traded for another. Please email FTNX with an outline summary of what service is sought. FTNX will advise if we are able to take on service sought as well as rates charged for such services.  


IN SUMMARY

Large revolving transaction are  in-depth complex business application  which take time to initiate and settle upon. As for climate change, many readers of our previous website entries are aware that FTNX does not believe ( the science is wrongly interpreted and convoluted) in climate change and does not believe if humans stopped using fossil fuels, the Earth’s temperature will drop or rise. A natural ‘shift’ in climate is not ‘climate change.’  For this reason fossil fuels especially Crude oil  will continue to be traded by FTNX, and will continue to be traded and used by others for decades to come. Delivery of certain goods by commercial air carriers are also considered. Above is a guiding aspect in where each transaction is considered on merit. FTNX will only consider buying goods from a ‘supplier in possession of goods.’ FTNX will read all enquires by email an treat such enquires as highly private and confidential. FTNX cannot conduct business with countries bearing sanctions with USA and or U.K, Canada and Australia. No business conducted with trading houses, ill informed  intermediaries, brokers. Business with Government agencies allowed, except those competing on the same platform at FTNX. FTNX is not represented by any other entity world wide.







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