ANDALUCIAPREMIUM
ENESDE
Request an offer
FertilizersSteelPrecious metalsTimberPetroleum products GuidesFAQHow we workAbout usContact Request an offer
ENESDE
  1. Home
  2. How we work
How we work

How a commodity transaction works, step by step

International trade in raw materials is a matter of trust. Our process creates that trust step by step, with documents, checks and clear responsibilities.

In brief

Every counterparty is verified before any commercial document is exchanged.

Quality and quantity are confirmed by independent inspection at loading.

Payment and delivery follow established banking instruments and Incoterms® 2020.

01

Enquiry

You describe product, specification, quantity, delivery window and destination, or the goods you want to sell. We check whether the request is realistic and whether we can serve it.

02

Verification

Both sides pass a know-your-customer check: company registry, beneficial owners, sanctions lists and proof of capability. Without it, no offer and no contract.

03

Offer and negotiation

We bring buyer and supplier together and align price, specification, Incoterms®, inspection and payment terms until both sides are ready to sign.

04

Contract and inspection

The sales contract fixes all obligations. Before shipment, an independent inspection company confirms quality and quantity and issues its certificates.

05

Shipment and settlement

The goods are loaded, documents such as bill of lading, certificate of origin and inspection reports are presented, and payment is released through the agreed instrument.

Why is a know-your-customer check necessary in commodity trading?

Because commodity markets attract fraud and are subject to sanctions and anti-money-laundering rules. A KYC check proves that a counterparty exists, who owns it and that it may legally trade.

Typical documents are an extract from the commercial register, identification of the beneficial owners, proof of address and, depending on the product, licences or references. We also screen names against EU, UN and other applicable sanctions lists. Only when both sides are verified do we exchange commercial documents.

Which Incoterms® are common in international commodity trade?

For bulk goods shipped by sea, FOB, CFR and CIF are the most common. For containers and land transport, FCA, CPT, CIP and DAP are frequently used.

The Incoterms® rule defines where risk and cost pass from seller to buyer. We agree it at the start of every negotiation, because it determines freight, insurance and the documents required for payment. The rules are published by the International Chamber of Commerce (ICC Incoterms® 2020).

How are international commodity transactions paid?

Usually through a documentary letter of credit or another bank instrument. The seller is paid once compliant documents are presented, and the buyer pays only against proof of shipment.

Letters of credit are governed by the ICC’s UCP 600 rules. Depending on the relationship, documentary collection or staged bank transfers can also be agreed. We recommend instruments that protect both sides and avoid unsecured advance payments to unknown parties.

Last updated: October 2026This page provides general information about trade practice. It is not legal, tax or investment advice.

Our principles

What we do not do

Clear limits protect our clients and our counterparties. These rules apply to every enquiry and every transaction, without exception.

  • No trading in bank instruments

    We do not buy, sell, lease or “monetise” SBLCs, bank guarantees, MT760 messages or ICPOs. These documents can secure a real transaction; they are not products in their own right.

  • No upfront fees

    We charge no fee before a transaction has been concluded. Our commission is agreed in writing and is tied to a completed deal.

  • No NCNDA before verification

    We do not sign non-circumvention or non-disclosure agreements until both sides have verified each other’s identity. Confidentiality only makes sense between known parties.

  • No petroleum of Russian origin

    We do not broker petroleum products of Russian origin or products refined from Russian crude oil, and we require a documented origin for every petroleum transaction.

  • No payment without bank security

    Payment runs against documents through a verifiable bank. We do not support advance payments to unverified parties, and payments for goods are never made to us.

  • No unchecked quality claims

    Quality and quantity are confirmed by an independent inspection company agreed in the contract, not by the seller’s word alone.

  • No price lists for petroleum or precious metals

    We do not publish prices for petroleum products or precious metals. A price is only discussed for a specific, verified transaction.

Guides

Related guides

All guides

01

What is a commodity broker and what does a commodity broker do?

Commodity broker meaning, the tasks of a physical commodity broker, how brokerage charges usually work and broker vs trader.

Read the guide02

Urea fertilizer 46% nitrogen: a guide for bulk buyers

What urea fertilizer is, what 46% nitrogen means, granular vs prilled, manufacture, packaging and bulk price drivers.

Read the guide03

Types of Fertilizer: Nutrient Content of Nitrogen, Phosphate, Potash and NPK Grades

Nitrogen, phosphate, potash and NPK fertilizers with typical nutrient content, production routes and checks for bulk purchases.

Read the guide04

Bulk fertilizer prices: how the price per ton is formed

What drives bulk fertilizer prices per ton, which public benchmarks exist, what costs come on top and how a wholesale offer is structured.

Read the guide05

EN 590 diesel specification explained

The European diesel standard in practice: 10 ppm sulphur, key properties, seasonal grades, customs code and price formation.

Read the guide06

EN590 diesel price: how it is formed and why “price today” offers mislead

How EN590 cargoes are priced against Platts and ICE gasoil, tonnes vs litres, extra costs, HS code and price-related red flags.

Read the guide07

Precious metals: list, trading and physical purchase

The eight precious metals, how precious metals trading works, physical vs paper metal and how companies buy physical bars.

Read the guide08

Precious metals prices explained: spot, LBMA benchmarks, premiums and bar formats

Spot price, LBMA benchmarks, troy ounce conversion, bid/ask, premiums by bar format, doré discounts and price clauses.

Read the guide09

Rebar steel: sizes, areas of steel, weights and grades

Rebar grades (B500, ASTM A615), sizes, areas of steel, weight per meter, mill certificates and the export procedure.

Read the guide10

Stainless steel supplier guide: grades, standards and certificates

What to specify when buying stainless steel: grades 304 and 316L, EN 10088, product forms, finishes and certificates.

Read the guide11

Timber suppliers: how to buy wood wholesale by the container

Local yard vs. import supplier, common species, product forms, grading, units, supplier checks and enquiry checklist.

Read the guide12

How an international commodity deal works

The typical sequence of a brokered commodity transaction, the role of each party and why the order of the steps matters.

Read the guide13

Commodity scams: warning signs every buyer should know

How SBLC and MT760 schemes, fake EN 590 and Jet A-1 procedures and advance-fee tricks work, and how to protect yourself.

Read the guide14

Letter of credit, SBLC, escrow and TT: paying for commodities

How letters of credit, standby letters of credit, documentary collections, escrow and bank transfers secure payment in commodity deals.

Read the guide15

LOI, ICPO, FCO, SPA and POP: documents and red flags

What LOI, ICPO, FCO, SPA and POP mean, how genuine transactions use them and how to recognise fraudulent offers.

Read the guide16

KYC and compliance in commodity trading

What a know-your-customer check covers, which documents are needed and how sanctions screening works in commodity trade.

Read the guide17

Inspection and certificates in commodity trade

Who inspects bulk cargoes, how quality and quantity are measured and what COA, COO and inspection certificates prove.

Read the guide18

Incoterms® 2020 for bulk commodities

Which Incoterms® rules fit seaborne bulk cargoes, where risk passes from seller to buyer and what to watch out for.

Read the guide
Contact

Do you have a requirement or an offer?

Tell us the product, specification, quantity, delivery window and destination port. We will reply personally with the next steps.

Request an offer
Request an offer