Armco Metals Holdings, Inc. announced a trade conflict with Duckshin Housing Co. from South Korea. The dispute arose after Armco Metals delivered two shipments of hot rolled wire rods to Duckshin totaling 6100 MT and valued at USD 2,928,000. The first payment was received smoothly, but Duckshin requested a 50% price reduction on the second shipment due to a perceived substandard manganese content.
Despite rejecting Duckshin’s demand, Armco Metals faced non-payment and lack of response from the company and its letter of credit issuing bank. The situation escalated when Duckshin filed a claim for compensation of USD 1,829,260.80, the exact amount of the second installment, alleging non-conformance of the goods to the required standards.
In response, Armco Metals’ Chairman and CEO, Mr. Kexuan Yao, condemned Duckshin, the Seoul Central District, and the letter of credit issuing bank for damaging the company’s reputation and causing economic losses. Armco Metals plans to seek fair arbitration to resolve the dispute.
The company emphasized the importance of cautionary statements regarding forward-looking projections and potential risks, highlighting the uncertainty surrounding the impact of external factors on their business operations. Despite the challenges posed by the trade conflict, Armco Metals remains committed to upholding their standards and seeking a resolution through appropriate channels.
