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Trader Balli Steel sues ArcelorMittal USA over coal deal - 16 November 2011

London headquartered commodity trader Balli Steel has filed a lawsuit against ArcelorMittal USA over coal supply, Steel Business Briefing learns from court documents.

The dispute centers around a February 2010 agreement that stipulated Balli would purchase 40,000 short tons of coal per month at $130/s.t fob. The coal was to come from ArcelorMittal's Princeton Mine in West Virginia; over the life of the agreement from April 2010 to March 2011 ArcelorMittal would sell Balli 480,000 s.t of coal, the lawsuit states.

"During the term of the purchase order ArcelorMittal Princeton often failed to deliver the required 40,000 tons of coal a month to Balli as required under the contract," the suit alleges. "Balli repeatedly advised AMP that the delivery failures were unacceptable and that shortfalls needed to be rectified...Instead, as the market price of coal continued to rise during the term of the purchase order, AMP decided to sell the coal it previously committed to Balli to other customers," the lawsuit alleges.

Balli's lawsuit states ArcelorMittal only delivered 233,622 s.t of coal, and still owes 246,378 s.t.

"Based on the difference between the contract price of coal, and the market price of coal at the end of the contract, AMP's failure to comply with the contract has caused Balli damages of more than $10m," Balli alleges in court documents.

The lawsuit asks for damages along with interest "at the highest rates allowed by law" and court costs.

An ArcelorMittal spokesperson told SBB the company typically does not comment on pending litigation.

 

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