Dearborn, Michigan, US-based steelmaker Severstal North America has announced an update on the lawsuit between Severstal Columbus, LLC and Jefferson Iron and Metal Brokerage, Inc. regarding their scrap procurement contract.
Severstal and Jefferson signed a scrap procurement agreement in 2006 for at least 30,000 mt of scrap per month. Upon Severstal informing Jefferson that its services were no longer needed in April this year, Jefferson filed a complaint indicating that the agreement is valid through September 2012.
An order issued by the Circuit Court of Lowndes County, Mississippi stated, "Severstal may purchase scrap directly from other vendors as long as the requirement of the first 30,000 gross tons per month is purchased from Jefferson Iron as provided in the contract."