Aluminium Scrap Tense (asked for Automotive Scrap only) review: Sent wrong material

We would like to put forward our claim for the wrong material sent to us instead of the automotive castings that we had ordered with attachment of 3-4% as agreed by you. As per the sample melting done by us and re-confirmed by your inspector Mr. Giriraj Singh the following conclusions were made:

The following results were derived by randomly taking 2 heats of approx 500 kgs each other then the 3 heats of 500 kgs each melted by us on receipt of the material.

1) Average Zinc attachment = 14.12%
2) Average non Aluminium, non Iron and non Zinc attachment = 5.56%
3) Average iron attachments = 8.04%

kindly note that majority of the material sent was general castings having a high percentage of non aluminium castings, approx 33% of the material sent was automotive castings having an average of 10.5% iron attachments.

Out of 24.24 tons the following is the actual breakup:-

1) 8.5 tons materials were automotive casting having a total iron attachment of 895 kgs

2) 15.92 tons is general casting having the following attachments:

* Zn attachments = 1830 kgs actual (versus 2235 kg earlier estimate)
* Other non-ferrous attachments = 198 kgs actual (versus 880 kgs earlier estimate)
* Iron attachments = 1265 kgs (estimated iron attachments in [protected]= 13, 892 kg of the general Aluminium casting scrap arrived through melting several (5) charges)

So, to summarize the total attachments are as follows

* Total Iron attachment 895+ 1265 = 2160 kg
* Zinc attachments = 1830 kg
* Other non-ferrous attachments = 198 kg
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Total non-aluminium attachments (including iron attachments) = 4188 kg (17.28%)

Agreed attachment was 3-4% = 969 kg (4%)

Our revised claim after sorting is for = 3219 kg (13.3%) excess attachment.

Kindly note that because of the nature of the material sent to us, we had to depute a professional sorter to separate the non-aluminium castings from the entire lot. We are paying them Rs. 2.00/kg for sorting this material which comes to around Rs. 32, 000/-. This had to be done otherwise we would had to reject this material outright because of very high Zn and other non-ferrous metal contamination.

Now, because of very high Iron content in the entire casting lot, we will have to depute a contractor to segregate the iron particles from the Aluminium castings. This again would cost us around Rs. 60, 000/- (Rs. 2.50/kg). Note that if the iron content was as expected i.e. 3- 4%, this would not have been required as the molten aluminium would not have been contaminated to that extent and could have been removed easily from the melt.

Kindly also note that since the container arrived here on the 8th of February and the document arrived on the 18th. We would like you to kindly reimburse the ground rent charge for 11 days amounting to Rs. 8000 and detention charges of Rs. 7500.

So to summarize our claim

1) Excess Attachment 3219 kg - USD 5, 858 - Rs. 2, 90, 000/- (@ 49.50)
Clearing cost for this excess attachment - Rs. 19, 000/- (Total bill 1, 09, 000)
2) Sorting charges - Rs. 32, 000/-
3) Cleaning charging because of excessive iron attachment - Rs. 60, 000/-
4) Reimbursement of Ground rent charges - Rs. 8000/- (total bill 10, 800 for 15 days)
5) Reimbursement of container Detention charges - Rs. 7500 /-

Total Reimbursement - Rs. 4, 16, 500/-

Kindly note that Mr. Sameer Tiwari of Starnovation Pvt. Ltd., Indore, India was the agent and representative of Overseas Metal Trading, UAE in India. His manager came and inspected the material and validated our claim. We have lot of proof in the form of email correspondense between him and us. Overseas Metal Trading, UAE is totally non responsive, it is not responding to any of our email. He is telling us to talk to Mr. Sameer Tiwari, whereas Mr. Tiwari says he will get the claim settled.

We feel that both these companies M/s Starnovation Pvt. Ltd, Indore, India and Overseas Metal Trading are cheats. Anybody who wants to deal with them, please do you due diligence before doing any business with them as they are not trust worthy.

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