Markets & pricing RFQ

Request for quotation (RFQ)

A document in which a buyer asks suppliers for prices, stating the material, specification, quantity, delivery place, Incoterm, payment terms and required delivery date. A good RFQ also sets the acceptable quality range, required documents (COA, TDS, certificates), packaging and how long offers must remain valid, so that offers can be compared like for like. On the marketplace, published buying requests are sent to verified suppliers in the relevant category.

Related terms

Firm offer vs. indicative price

An indicative price signals the market level and does not bind the seller; price ranges in listings are usually of this kind. A firm offer is a binding offer for a defined quantity, quality, delivery and payment terms, valid for a stated period (e.g. “valid 24 hours”, without “subject to prior sale”), which forms a contract as soon as the buyer accepts it. Because raw material markets move quickly, firm offers are usually short-lived, and reservations such as “subject to availability” should be watched for.

Minimum order quantity (MOQ)

The smallest order a supplier will accept. For raw materials the MOQ is usually defined by a container (e.g. 20–25 t of resin, one 40’HC), a production batch or a truckload; for bulk cargo it may be a ship parcel such as 5,000 t. Requests below the MOQ are served at a higher unit price, from stock or via distributors. On the platform, large transactions go to the deal room, while small quantities are routed to direct contact with the supplier.

Purchase order PO

The formal order a buyer sends to a supplier stating the product, specification, quantity, price, delivery date, delivery term and payment conditions. Once the seller confirms it in writing (order confirmation), a binding contract exists between the parties. The PO number is quoted on invoices, delivery notes and shipping documents and makes reconciliation easier.

Explained in the trade handbook

Trade handbook