Euromet chases Isoalloys after $500,000 moly deal goes awry

Euromet, whose majority shareholder controls Italian trading company Gerli Metalli SpA, signed a deal in early 2008 to buy 20 tonnes of ferro-molybdenum, in two 10-tonne consignments. The dispute is the result of Euromet alleging that the molybdenum content in material shipped to it by Isoalloys, a Brazilian converter run by Anibal Monge Salgado, was lower than the supplier claimed. Euromet was left almost $50,000 out of pocket as a result of the disputed deal with Isoalloys, which went into Brazil’s version of bankruptcy protection back in July after “several factors” made it suffer a “financial misbalance”. There was some discrepancy between the claimed molybdenum content of the first 10-tonne consignment and what Euromet’s customers found it to contain, one well-informed market source said. The vast majority of this consignment contained 64.02% molybdenum compared with the 67.159% molybdenum that Isoalloys claimed, according to a document that Euromet sent to Isoalloys’...