Glossary
The steel-import terms that matter
Cross-border steel trading is full of acronyms — and fraud often hides in the gap between a term and what a buyer thinks it means. These are the definitions worth knowing before you order.
Certificates & quality
- Mill Test CertificateMTC
- A document issued by the steel mill certifying that a specific batch (identified by heat number) meets the ordered chemical composition and mechanical properties. Often issued to the EN 10204 3.1 or 3.2 standard. A genuine MTC can be verified with the issuing mill; a forged or recycled MTC is one of the most common steel-import frauds.
- Fake mill test certificate scamMTC verification guide
- EN 10204
- The European standard defining types of inspection documents for metal products. Type 2.1/2.2 are declarations by the manufacturer; type 3.1 is certified by the mill's own inspection department against the order; type 3.2 is additionally validated by an independent inspector or the buyer's representative. For high-risk orders, insist on 3.1 or 3.2.
- Positive Material IdentificationPMI
- A test, usually with a handheld XRF (X-ray fluorescence) analyzer, that reads the actual elemental composition of a metal in seconds. It is the definitive on-arrival check that steel matches its certificate — essential for grade-sensitive products like stainless 304/316 and alloy steels.
- Grade substitution scam201 vs 304 stainless
- Heat Number
- A unique identifier assigned to a single batch (or 'heat') of molten steel. It links physical material to its mill test certificate, allowing chemistry and mechanical properties to be traced. Verifying heat numbers directly with the mill is a core anti-fraud check.
- Coating Weight
- The mass of zinc or aluminium-zinc coating per unit area on galvanized or coated steel, expressed in classes such as Z275 (275 g/m² zinc, both sides) or G90. Because under-coating is invisible to the eye, coating-weight fraud is a frequent and costly deception that requires independent testing to detect.
- Coating-weight fraud
- HRB400 / HRB500
- Chinese hot-rolled ribbed bar (rebar) grades, where the number denotes the characteristic yield strength in MPa. Because rebar is priced by weight, under-rolled bars billed on theoretical weight are a common way to deliver less steel than paid for.
- Product risk ratings
- Q235 / Q355
- Common Chinese structural carbon steel grades (the number is the minimum yield strength in MPa). Substituting a lower grade such as Q235 for an ordered higher grade like Q355 (comparable to S355) is a frequent and safety-critical form of grade substitution.
- Grade substitution scam
- SASO / SABER
- Saudi Arabia's product-standards body (SASO) and its online conformity platform (SABER), through which a Certificate of Conformity is issued for regulated imports. Certification numbers should be verified on the official platform, not taken from supplier paperwork.
- Fake certification scam
Verification
- GSXT Registry
- China's National Enterprise Credit Information Publicity System — the official government registry where a company's registered legal name, status, registered capital, and business scope can be confirmed. Matching the GSXT entity against the contract and the beneficiary bank account is a foundational supplier-verification step.
- How to verify a Chinese steel supplier
- Business License
- The official document authorising a Chinese company to operate, showing its registered legal name, unified social credit code, legal representative, and business scope. A company claiming to be a mill should have manufacturing in its registered scope — a trader will not.
Payment & trade
- Beneficiary Account
- The bank account receiving your payment. It should be in the exact registered legal name of the contracting company. A mismatch — a personal name, a different company, or a third country — is one of the strongest warning signs of fraud and a feature of the offshore-account and payment-redirection scams.
- Offshore account trapPayment redirection scam
- Letter of CreditL/C
- A bank undertaking to pay the seller once documented conditions (shipping documents, inspection certificates, etc.) are met. Because payment is conditional on compliant documents rather than trust, an L/C is one of the safest payment methods for a first order with an unverified supplier.
- Letter of credit vs T/T
- Telegraphic TransferT/T
- A bank wire transfer, the most common cross-border payment method in the steel trade. Fast and cheap, but offers little buyer protection once sent — which is why deposits should be kept modest and balances tied to inspection milestones.
- Safe payment terms for a first order
- Proforma InvoicePI
- A preliminary bill of sale sent before goods are supplied, setting out products, quantities, prices, and terms. It often serves as the basis for the contract and the buyer's payment, so its banking and specification details should be cross-checked carefully.
- Incoterms
- Internationally recognised trade terms (e.g. FOB, CIF, CFR, EXW) defining when risk and cost transfer between buyer and seller. Misunderstanding Incoterms can leave a buyer unexpectedly liable for freight, insurance, or customs, so the agreed term should be stated explicitly in the contract.
Logistics & inspection
- Bill of LadingB/L
- A document issued by the carrier acknowledging receipt of cargo for shipment; it also functions as a document of title to the goods. Because it can unlock payment, a forged bill of lading is used to make it appear that goods have shipped when they have not.
- Fake bill of lading scam
- Container-Loading SupervisionCLS
- An inspection service where an agent witnesses the container being stuffed, photographing each layer with timestamps and reconciling counts and weights against the packing list. It defeats the head-and-tail (sandwich) scam, where good material conceals substandard goods in the middle.
- Head-and-tail coil scamHow to inspect steel before shipment
- Pre-Shipment InspectionPSI
- An independent inspection of goods before they leave the supplier, checking quantity, quality, grade, and conformity against the order. Commissioning and paying the inspector yourself — rather than accepting a supplier-arranged report — is essential to its value.
- Fake inspection report scam
Know the terms — now run the checks
Put these definitions to work with the interactive supplier verification checklist before you pay a deposit.
Open the verification checklist