Many exporters lose money not because their steel is too expensive, but because their export pricing misses costs. A forgotten port charge or a wrong freight assumption on a 25-tonne container can wipe out the margin. A clear costing sheet — from ex-works to FOB to CIF — protects your profit and lets you quote confidently.

Step 1: Ex-works cost

Start with your cost to produce or buy the material, ready at your factory or warehouse:

  • Raw material or purchase cost per tonne
  • Processing: cutting, bevelling, threading, machining, heat treatment
  • Testing and inspection costs (internal)
  • Overheads and finance costs
  • Your profit margin

This gives your ex-works (EXW) price.

Step 2: Export packing

Export packing for steel can be significant:

  • Bundling with steel strips, end caps, VCI wrap for stainless
  • Wooden crates or pallets (ISPM 15 treated)
  • Marking, tags and labels

Learn more in export packing for steel pipes and fittings.

Step 3: Inland transport

Truck or rail from your plant to the port or container freight station. For heavy steel, check:

  • Per-trip vs per-tonne pricing
  • Loading and unloading charges
  • Weight limits on roads

Step 4: Port and export charges

  • Customs broker (CHA) fees
  • Export documentation
  • Container stuffing and seal charges
  • Terminal handling charges (THC) at origin
  • Port and CFS charges
  • Third-party inspection, if you pay for it
  • Certificate of origin and legalisation fees

Adding steps 1–4 gives your FOB price (Free On Board at the port of loading).

Step 5: Ocean freight → CFR

Get a current freight quote from your forwarder for the destination port and container type. Steel is heavy, so you often reach the weight limit before the container is full. Ask about:

  • Base freight
  • Surcharges (bunker, peak season, war risk where applicable)
  • Overweight charges

FOB + ocean freight = CFR price.

Step 6: Insurance → CIF

Marine insurance is usually calculated on 110% of the CIF value at a premium rate quoted by your insurer.

CFR + insurance = CIF price.

For definitions of these terms, see our Incoterms guide for metal exporters.

Worked example (illustrative only)

One 20 ft container of seamless pipes, 24 tonnes net:

Item USD per tonne
Ex-works price (incl. margin) 1,000
Export packing 15
Inland transport to port 12
CHA, documentation, THC, port charges 10
FOB 1,037
Ocean freight (container cost ÷ 24 t) 60
CFR 1,097
Insurance (approx.) 2
CIF 1,099

These numbers are examples to show the method — not market prices. Use your own current costs and freight quotes.

Don't forget these

  • Currency risk — if your costs are in rupees and your price in dollars, a currency move can change your margin. Add a buffer or quote short validity.
  • Bank charges — LC charges, remittance fees and discounting costs. See letter of credit for steel exporters.
  • Export incentives — many countries offer duty refunds or incentives on exports. Check what applies to your product, and treat them as a bonus rather than the core of your margin.
  • Payment terms cost — 90-day usance terms have a finance cost.
  • Raw material volatility — nickel, molybdenum and steel scrap prices move. Keep quote validity short.

Price per metre or per piece

Buyers often want price per metre or per piece. Convert using accurate weights from our pipe weight calculator or steel price calculator.

Present the price clearly

A professional quote shows:

  • Unit price and total in the buyer's currency
  • Incoterm with named port
  • Validity and payment terms
  • What is included (packing, inspection, certificates)

Read how to write an export quotation that wins steel orders.

Keep a costing template

Build a simple spreadsheet or use your quotation software with fixed rows for every cost head: material, processing, packing, inland freight, port charges, ocean freight and insurance. Update freight and exchange rates for each offer. A standard template prevents forgotten costs and lets anyone in your team prepare a price the same way.

Frequently asked questions

Should I quote FOB or CIF to a new buyer?

Many new buyers prefer CFR or CIF because the price is easier to compare. Larger importers with their own freight contracts often prefer FOB.

How often should freight be updated?

Freight rates can change weekly. Get a fresh quote for each offer and keep validity short.

What if the container is underweight?

You pay the same freight for less steel, which raises cost per tonne. Combine products or sizes to use the full payload.

Should export incentives be included in the price?

Treat them as additional profit or a buffer. Rules and rates can change, so don't depend on them to make an order viable.

Key takeaways

  • Build price in layers: EXW → FOB → CFR → CIF.
  • Steel's weight makes freight and payload planning critical.
  • Account for currency, bank and payment-term costs.

QuoteMitra helps you turn your costing into a clean export quotation in USD, EUR, AED and more.