Structured trade finance

Stemcor’s experienced trade finance team works with our bankers to offer customised finance packages to the steel industry. These are used to fund working capital requirements, including pre-production finance, mining finance and structured export receivable finance.

In most cases, the transactions involve an advance of funds made against the delivery of steel by a given date. The quantity, specification and price of the steel are agreed in the contract. Where there are frequent and ongoing steel deliveries, advances can be made on a revolving basis.

If the steel supplier has other requirements, Stemcor is frequently able to identify a customised solution by taking advantage of our extensive contacts in the financial and insurance markets, and by utilizing the latest risk-hedging techniques.

There may be circumstances where Stemcor advances funds to allow the steel producer to purchase raw material for steel production directly from Stemcor. This type of contract resembles a barter trade involving the supply of raw materials by Stemcor in exchange for the delivery of finished steel by the steel producer.