PITTSBURGH Stemcor USA
Inc. is seeking nearly $5 million from a Brazilian supplier and
its trader for allegedly not delivering shipments of pig
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
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
New York-based Stemcor USA
declined to comment on the matter, and the other two parties
couldnt be reached by AMM.