Severstal North America just released the following press release:

DEARBORN, Mich. September 14, 2011 – Severstal is pleased to provide an update in response to the recent press coverage regarding the lawsuit between Severstal Columbus, LLC and Jefferson Iron and Metal Brokerage, Inc. regarding the interpretation of their scrap procurement contract.

According to the Order issued by the Circuit Court of Lowndes County, Mississippi, on September 12, 2011, “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.”

The Court’s understanding of the parties’ rights and obligations to purchase and sell scrap pursuant to the contract comports precisely with Severstal’s stated position. Severstal is confident that the latest ruling will help in allaying any concerns of its direct scrap vendors.

Source: Severstal North America