I came to Korea and saw material yes. We went to Won Steel the day before Yeon Metal. We didn’t see iron dust / mill scale / granulated pig iron / or iron ore in the yard. What we saw is they feed turning into pressing machine and briquettes turned out. We saw another briquettes in Won Steel as well but they said it is for local supply which they put a certain quantity of carbon inside to make higher recovery rate. That’s it for Won Steel. We didn’t know they have to use 20% for granulated pig iron / mill scale / iron ore for binding material. I confirmed no one telling me this. I just only know it may contain a small portion of iron dust. That’s it actually.
Another day we went to Yeon Metal yard, if Lex remember, they showed us breaking material. After seeing broken briquettes, I expressed my anxiety because Yeon Metal’s material have some small stone (later they all said it is granulated pig iron) inside briquettes but it is really little mixed and quite dark due to oily. At that time, we believe Yeon Metal quality is worse than Won Steel because Yeon is black (oily) and some stone (granulated pig iron) inside while we didn’t see this thing in Won Steel material. After that we went to have coffee in meeting room at Yeon Metal office, we had many questions to Yeon Metal that how this material is from because we saw this small stone (granulated pig iron) and they said it is material from small junk shop which may contain this. I have to insist no one telling me how much they will mix granulated pig iron/mill scale/iron ore inside briquette but of course everyone understand well we have anxiety. After leaving Yean Metal yard, I still told Lex that Won Steel material look better because no dark / no small stone (granulated pig iron / iron ore / mill scale). And Lex also said yes it is. At this time, I still confirm I didn’t know they will mix 20% of such materials intentionally. I am not alone to not know this but all my partners who also accompany also didn’t know.
When first lot went to our Indian buyer, they are steel mill, not the yard, we also got a big complaint with so many impurity inside, so I asked my friends and Lex to see the actual cargo in Chennai. Indian told me it is lot of mill scale but I declined. I said to them it is not possible at all. We do not put mill scale inside. I asked Lex this thing too and Lex confirmed it is not mill scale. I didn’t ask Lex further what it is and Lex didn’t tell what it is. So, I just believe it is iron dust which is possible when small turning pressed into briquette and may generate some dust inside, anyway it should have much since it is from itself turning production. I still do not know Won Steel intentionally mixed 20% granulated pig iron / iron dust / mill scale because no one telling me at this stage. I still thought it is just iron dust arising from turning itself.
Consequently, Indian rejected me one last cargo (500 MT) which supposes to ship out from Korea. I told Lex to hold the cargo in Korea unless we had solution with Indian during our visit. Unfortunately, Indian seem more mad and even wanted us to take one lot which is at bonded warehouse back. I turned down immediately. Finally we have to divert this lot to Taiwan. We paid $221 FOB + $20 freight, in total $241 CFR Kaohsiung. We sold to Taiwan at $200 CFR. We took loss $41/MT plus demurrage / port rent charged by TS Line for another $4000.00 This time I sold to yard, not the mill. I have no option. I already asked Lex to not ship out and sell it locally but Lex refused to do for us. I just wanted to avoid any more problem while Indian shipment not yet solved well. Again, I still do not know Won Steel mix 20% granulated pig iron / mill scale / iron ore at this stage.
In meantime, we have another 1000 mt for Chennai port, India which was not yet loaded and I asked Lex to cancel it. But Lex said it was no good idea to cancel this order with Won Steel and asked us to divert to Pakistan market instead because Pakistan first shipment found no complaint. I said I did not want to take risk. I still wanted to cancel it and at that time Korea market improving so it should be okay for Won Steel if we cancel it but Lex still insisted to load. I confirmed this. Finally I have to allow you for loading of this 1000 MT to Pakistan. We sold this load to Pakistan with loss again, approx. $20/MT. You can see my intention. If anything we can cooperate with Terra, we do for a friendship. I do not know what you think about us but we always think Terra as our friend. All this 1000 MT is on water to Port Qasim, Pakistan. We do not know if any problem about quality for all this 1000 MT.
Later, the diverted cargo of 500 MT to Taiwan arrived destination port. They gave us a call with mad mood complaining very bad quality. They said it was full of iron ore. I was confused and I immediately declined them that that was not iron ore! It may be small chip or iron dust but it should not be much quantity. I asked my agent, lady, going to the yard immediately to make sure again but my agent called me back and confirmed it is iron ore. I again turned it down. But I also wanted to make sure with Lex for this issue that they found so much iron ore. I asked Lex and Lex replied me that it was not iron ore, Korea has no ore mine!! I believed Lex. I again told my agent it was not possible that they found iron ore. I had a big argument with my agent and I thought we can no longer continue business with this agent. I still did not believe my agent.
Finally, Lex / Gilbert / Mr Seo went to Taiwan to check cargo themselves, I didn’t accompany because I had many issues in Thailand. I didn’t know all of you confirmed them that you had put 20% iron ore in briquette production. I tried to settle it down when you all were there in Taiwan because Mr Seo was there so he could decide the final claim but I turned to get a message from Lex that you will only accept $20/MT before they took flight back to Korea. It was useless because negotiation has to re-start again. At this stage, I confirm I still did not know Won Steel mix 20% such materials in production while my customer / my agent already knew this. After you all back to Korea, I had to restart negotiation on claim but our buyer still insisted $100/MT claim unless taking back the cargo. I, personally also disagreed $100 claim. I told Lex and you in phone. I spoke with my agent that it was just iron dust which can generate from turning itself but they said it is confirmed iron ore by our Korean supplier and it was up to 20% actually !! I got mad on them and told them it was not possible at all. I felt a breakdown relationship with them at this stage. After that I asked Lex to confirm this again because they told us Korean confirmed them in meeting that supplier put 20% iron ore and Lex confirmed it. Frankly that was my first time knowing this that it was 3 days back only. I told Lex I felt upset.
During our working on claim, it was last Saturday / Sunday. Lex called us and asked us to wire the fund for all pending invoices. I even did not have shipping document via email yet and even problem with Taiwan / India shipment still moving more worse. Since Indian claimed us $100/MT and Taiwan claimed us same rate and even they all wanted to return the cargo, that was really big burden that we can bear. I need some favor / any favorable reply from Won Steel to support us but we only had $20/MT verbally for Taiwan shipment only. In afternoon same day, I got message from Pakistan that problem has full of mill scale again. Pakistan buyer wanted to return again. I said I could not take back. In my thought, only Taiwan / India we still did not know how to take it back. Now, problem in Pakistan still goes on. We still do not know about fate of 500MT + 275MT + 275MT lot arriving. I told Lex more claims coming, so he should settle down Indian / Taiwan asap, otherwise all the things will go more crazy.
To reply you no 2), we sold to 2 steel mills in India (Dra Industries / Viki Steel) and to steel mills in Pakistan as well. Only yard is Taiwan that because we were desperate with rejected cargo. It was not their first time. They bought Chile origin and Mr Lex saw this quality and Lex also confirmed it was very good quality, pure turning!
To reply you no 3), we sold same description of goods but I think buyers did not expect to have 20% iron ore / mill scale / granulated pig iron. Please understand you sold us 80% recovery rate guaranteed yes. We also sold this thing but it didn’t mean they allowed us to load 20% mill scale / iron ore. It is different meaning. And for such 20% mixed, I confirmed I just knew this in last 3 days back. If I knew this before, I will not do this business.
To reply you no 4), I am sorry if you think I am leading problem to you. If any problem occurs, we always cooperate for solution but $100 claim from our buyer and $6 your proposal, we could not finish it with our buyer. It is really big gap, $100 and $6 (please understand we worked with them on $20-30/MT claim as per verbal confirmation from Mr Lex but they were surprised with $6/MT claim settlement!)
It was my biggest claim in my business as well.
Again, we always treat you as a friend / family. Don’t get us wrong. I may be wrong if I was thinking you all only favor Won Steel, not us because you also had business with them for pig iron. What I want from you is you must get full responsibility from Won Steel for this problem.
It is quite sensitive writing you this email. If anything goes wrong with my email, I am sorry.
For $50/MT claim. I will try. Whatever best case you think best, I believe. And I will go straight with this direction and I will always cooperate. Just $6/MT your yesterday proposal made them mad and frankly I thought too. $20 was first proposal, and they declined and asked us to tak