Question 1

What is the minimum order quantity (MOQ) when buying steel mill-direct in India?

Accepted Answer

MOQs vary by mill and product. Primary producers like SAIL, Tata Steel, or JSW typically require full truckloads or rake quantities, often starting at 20 to 25 tonnes for flat products and going much higher for rail or project orders. Secondary mills and re-rollers may accept smaller lots (5 to 15 tonnes) but still expect consistent, repeat volumes. If your requirement is below a mill's MOQ, a trader or stockist is the practical route. Sauda can check live MOQs across mills and traders for your specific grade and quantity.

Question 2

How do payment terms differ between steel mills and traders in India?

Accepted Answer

Mills almost always require advance payment or an irrevocable letter of credit before dispatch. Some offer a small window (7 to 10 days) for established channel partners, but new buyers should expect to pay upfront. Traders and stockists, on the other hand, frequently extend 15 to 45 days of credit depending on the relationship and volume. This credit flexibility is one of the main reasons buyers work with traders despite the price markup. When you source through Sauda, the negotiated terms (including payment timelines) are clearly communicated with each quote.

Question 3

What documents should I verify before buying steel from any supplier in India?

Accepted Answer

Always verify the supplier's GST registration and check that their filings are current (not suspended or cancelled). Ask for mill test certificates (MTCs) for every heat or lot, confirming chemical composition and mechanical properties. For products covered under mandatory BIS certification (like TMT bars, structural steel, or CR coils), confirm the BIS licence number and look for the ISI mark on the material. Request a weight slip from a certified weighbridge at loading. For interstate movement, ensure a valid e-way bill is generated before dispatch. Sauda checks each supplier's GST filings and return history before presenting any quote, so you start with a layer of verification already done.

Question 4

Is Sauda free for buyers? How does it make money?

Accepted Answer

Yes, Sauda is completely free for buyers. There is no fee, no commission deducted from your side, and no hidden charges. Sauda earns from the supplier side of the transaction. You get genuine, verified, and negotiated quotes without paying anything for the service. Simply send your steel requirement on WhatsApp at https://wa.me/919987549010 and receive competitive quotes within 24 hours.

Question 5

How does Sauda verify steel suppliers before sending me quotes?

Accepted Answer

Sauda checks each supplier's GST registration status and reviews their GST filing and return history to confirm the business is active and compliant. This helps filter out shell entities, dormant firms, or suppliers with irregular tax records. Beyond GST verification, Sauda's team contacts the supplier directly, confirms stock availability and pricing by phone, and negotiates on your behalf. The result is a live, verified quote you can act on with greater confidence.

Question 6

When does it make sense to buy from a steel trader instead of going mill-direct?

Accepted Answer

A trader makes sense when your quantity is below the mill's MOQ, when you need mixed grades or sizes in a single load, when you need material urgently from ready stock, or when you need credit terms that a mill will not offer a new buyer. Traders also handle the logistics of smaller dispatches and can consolidate products from multiple mills. The trade-off is a per-tonne markup over the mill price. For larger, recurring volumes of a single grade, going mill-direct (or through a mill's authorized distributor) will usually save you money. Sauda sources quotes from both mills and traders so you can compare and choose the best option for your situation.

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