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Stemcor USA sues pig iron producer, trader

Keywords: Tags  pig iron, Stemcor USA, Cia. Siderúrgica do Pará, Cosipar, Americas Metals Trading, M/V UBC Santos, Mississippi River, breach of contract lawsuit Lisa Gordon

PITTSBURGH — Stemcor USA Inc. is seeking nearly $5 million from a Brazilian supplier and its trader for allegedly not delivering shipments of pig iron.

The trading company filed a breach-of-contract lawsuit against Marabá, Brazil-based Cia. Siderúrgica do Pará Ltda (Cosipar) and London-based America Metals Trading LLP (AMT) in U.S. District Court in Louisiana, stating that it believes a cargo of the iron units is aboard the vessel M/V UBC Santos, which is on the Mississippi River.

The dispute centers on two shipments of pig iron produced by Cosipar, with AMT acting as the trader. Stemcor is suing the companies for $4,989,000 in damages.

In April, Stemcor said it agreed to purchase 6,000 tonnes of pig iron for $2.8 million and submitted two advances totaling $966,000. The shipment was to be chartered by May 31. Stemcor told the court that it never received the material.

In May, Stemcor said it placed a second order for 6,000 tonnes of pig iron at $2.8 million, also to be chartered no later than May 31. On this sale, Stemcor prepaid $2.3 million. Stemcor alleges it was shorted, and only received 1,350 tonnes valued at $540,000.

Stemcor told the court it has information that 13,821 tonnes of pig iron from Cosipar is en route to the United States, which could be subject to attachment.

New York-based Stemcor USA declined to comment on the matter, and the other two parties couldn’t be reached by AMM.

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