Knowledge
Knowledge
A reference for buyers: technical terms, the objections traders hear most often, and how prices in this market are actually formed.
30
Glossary entries
8
Buyer objections with answers
Glossary
Technical terms from B to V
| Term | Explanation |
|---|---|
| Biuret | A by-product of urea production that is harmful to plants if present in excess. Fertiliser urea is therefore usually specified at a maximum of 1.0 % biuret. |
| B/L (Bill of Lading) | The transport document issued by the shipping line. It serves as freight document, receipt for the goods and proof of title. Without the original the goods are not released at the destination port. |
| Bright stock | The highly viscous residue from vacuum distillation of base oil, used for cylinder oils and other heavy duty applications. |
| CAS number | Unique identification number of the Chemical Abstracts Service for a chemical substance, independent of trade name or manufacturer. |
| Cat fines | Catalyst residues from the fluid catalytic cracking process that occur in bunker fuels as abrasive solid particles and can damage engines. |
| CCAI | Calculated Carbon Aromaticity Index. A value calculated from density and viscosity to estimate the ignition quality of heavy fuel oil. |
| COA | Certificate of Analysis. A laboratory certificate that confirms the actual values of a delivered batch against the agreed specification. |
| DEF / AdBlue | Aqueous urea solution to ISO 22241 with a urea content of 31.8 to 33.2 %, used for nitrogen oxide reduction in SCR exhaust aftertreatment systems. |
| Demurrage | Compensation the charterer pays when loading or discharging a ship takes longer than the contractually agreed laytime. |
| FIBC | Flexible intermediate bulk container, the big bag for bulk solids. It typically holds around one tonne and is standard packaging for fertilisers, granules and powders. |
| Flexitank | A liquid tight bag for one trip, loaded into a 20 foot container so the container can carry bulk liquid. Not suitable for dangerous goods. |
| Group I | Base oil from conventional solvent refining, saturates below 90 %, viscosity index 80 to 120. The least pure of the three main groups. |
| Group II | Base oil from hydrocracking processes, saturates of at least 90 %, sulphur of at most 0.03 %, viscosity index 80 to 120. |
| Group III | Base oil from severe hydrocracking or hydroisomerisation. Same purity criteria as Group II, but a viscosity index of at least 120. Used as the basis of fully synthetic engine oils. |
| HS code | Commodity code of the Harmonised System, used internationally for customs clearance and foreign trade statistics. |
| HTHS | High temperature high shear. The viscosity of an engine oil under high temperature and high shear load, which indicates film stability in the loaded journal bearing. |
| Incoterm | A clause defined by the International Chamber of Commerce that governs the transfer of costs and risk between seller and buyer in a delivery, for example FOB or CIF. |
| ISO VG | Viscosity grade series to ISO 3448 that classifies industrial oils by kinematic viscosity at 40 °C into fixed grades such as VG 32, 46 or 68. |
| LC at sight | Documentary credit of the buyer's bank that pays immediately on presentation of compliant documents. The usual payment instrument in commodity trading. |
| NLGI | Consistency classes of the National Lubricating Grease Institute for greases, from 000 (almost fluid) to 6 (almost solid). |
| NOACK | A test method to DIN 51581 that measures the evaporation loss of an engine oil at high temperature. The lower the value, the less oil is lost through evaporation. |
| Penetration grade | Classification of bitumen by how deep a standard needle penetrates at 25 °C, in tenths of a millimetre, for example 60/70 or 80/100. Lower values mean harder bitumen. |
| Platts / Argus | The two major price reporting agencies for commodity markets, whose daily reference prices serve as the basis for formula prices in supply contracts. |
| Prilled vs. granular | Two grain forms of urea fertiliser. Prills form when the melt is sprayed in a cooling tower, granules grow in a fluidised bed. Granules are usually harder and keep better in storage. |
| REACH | EU regulation on the registration, evaluation, authorisation and restriction of chemical substances, which requires registration for chemicals marketed in the EU. |
| SAPS | Sulphated ash, phosphorus, sulphur. A collective term for the ash forming components in an engine oil that can damage exhaust aftertreatment. Vehicles with a particulate filter and catalytic converter need low SAPS oils. |
| SBLC | Standby letter of credit. A bank guarantee that is drawn only if a contracting party fails to meet its payment or delivery obligation. It serves as security and is not a primary means of payment. |
| SDS | Safety data sheet, with 16 standardised sections on the hazards, handling, storage and emergency measures for a product. |
| TBN / BN | Total base number. Measures how well a lubricating oil can neutralise acidic combustion residues. Particularly relevant for marine cylinder oils. |
| Viscosity index (VI) | A figure for how strongly the viscosity of an oil changes with temperature. The higher the VI, the more stable the lubricating ability remains across the temperature range. |
Why no fixed price appears on this site
Formula price instead of fixed price
Price formation in this market seldom follows a single figure. Credible suppliers quote a reference formula: the current Platts or Argus price for the respective product, plus or minus a differential for freight, storage, financing and margin.
A fixed price that stays the same for weeks leaves these costs out. Either it is out of date or it was never properly calculated.
A price well below world market level is no negotiating success. In this market it is the most reliable sign of attempted fraud.
Objections
Eight questions buyers ask
Why should I buy from a trader rather than directly from the producer?
Producers mostly sell in bulk quantities, on long contract terms and without mixed cargoes. A trader bundles several product lines and origins, offers more flexible lot sizes (FCL as well as bulk tankers) and takes on the logistics and documentation that producers generally do not provide.
How do I know the goods really exist?
Independent inspection before loading by SGS, Bureau Veritas, Intertek or Cotecna, verification of the certificate number directly with the inspection company, and the original bill of lading instead of a mere assurance.
Why are your prices not the lowest I can find online?
In this market an offer well below world market level is a classic warning sign of fraud. Credible prices are based on reference formulas such as Platts or Argus plus a differential and reflect real freight, storage and financing costs.
Why should I pay anything in advance before I see the goods?
You should not. Standard settlement runs through a documentary letter of credit with payment against documents instead of prepayment. This is one of the clearest ways to tell credible suppliers from fraudsters.
Can you really deliver reliably to Africa when you are based in Erbil?
Yes. We use specific port routes from the Gulf region and from the ports of origin to the destination ports in East, West and Southern Africa, and we plan around the seasons of each commodity, for example the narrow delivery window before sowing for fertilisers.
Why do you trade such different product groups? Isn't that suspiciously broad?
The same types of customer often need these product groups side by side. A mining or agricultural operation needs lubricant, chemicals and fertiliser. Each product line has its own technical specification on this site instead of a generic overall list.
How big is your company really?
We answer with details you can check: register number, office location and contact persons with a professional profile, as soon as these are published. We give no headcount and no turnover figure that we cannot substantiate.
What happens if the quality on arrival does not match the specification?
Independent inspection before loading and, depending on the contract, again on arrival. Deviations are settled through the procedure set out in the contract, with documentary evidence. They are not renegotiated by phone.
Make an enquiry
Give us the product, quantity, delivery term and destination port. We settle everything else by phone.