Cayman bids good riddance to scrap metal

| 29/04/2010

Cayman Isalnds, GRand Cayman, scrap metal(CNS): After numerous controversies and failed attempts the country’s scrap metal left from Hurricane Ivan almost 6-years ago is headed for Asia. Following announcements by the deputy premier in February the contractors began work this week. A barge travelled from Tampa, Florida and docked at the harbour Monday night (26 April) and it is expected to be here until the end of the week. Government signed the new deal to have the metal removed last month and it was revealed in the Legislative Assembly that it had received around $300,000 from local company Cardinal D Limited, who bought the baled scrap at $50 per tonne.They in turn have reportedly sold the metal to Hong Kong-based metal trading company Hong Luen. (Photo Dennie Warren Jr)

The government said the $300,000 deal involving the 6,000 tons of baled scrap metal from the dump followed the awarding of a contract through the Central Tenders Committee. Juliana O’Connor Connolly said at the time that government had taken the money in advance and, unlike attempts made by the previous administration no local sub-contractors were out of pocket as a result.
O’Connor Connolly also confirmed that Cardinal D Ltd was a locally incorporated company that was working with its alliance, Pan Caribbean Energy Limited, and that it had in turn contracted Hong Luen Metal Trading Company of Honk Kong. O’Connor Connolly said everythingwas above board with this contract and the remaining metals would also now be put out to contract. “We have followed all the laws in regards to these contracts and we will continue to do so,” she added.

Category: Local News

Comments (12)

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  1. Anonymous says:

    The trasportation coats from Grand Cayman to Tampa is approxamatly 300K

    The trucking costs from the landfill to the barge is approx. 75K

    Insurance on the cargo is 20K

    Cost of the steel is 500K

    Although there is still a healthy profit in this transaction, it is the contractor who is taking all of the risk-

    If the steel gets to Tampa and the steel mill rejects it for any reason, it is the contractor who will have to bear the cost of disposing of the material,

    Trading scrap steel is a highly risky venture, hence the solid reward when properly executed.

     

    As a experienced steel trader, only 20% of deals go off without a hitch. The Caymanian Government got a good deal from Cardinal D.

  2. Dilemma says:

    Well the so called ACTION man and his goonies couldnt get it done so Kudos to Juliana and the boys in green.

  3. Laura says:

    SPOT ON!

    This government signs another bonus deal!  Way-to-go Mac!

  4. Anonymous says:

    Are you really serious questioning the selling price?  Then maybe try buy it yourself and find anyone that will buy it from you.

  5. Anonymous says:

    Just curious: Scrap metal is a commodity just like gold or copper. Did a quick google search and got an average price per ton of US $250. per gross ton from December until now. Granted there maybe be some factors involved (mixed metal etc) but selling a commodity is fairly easy. it doesn’t take a lot of middle men. Reminds me of the Cash-4-Gold scam that pays about a third of daily spot (US$1,172 today) and cost less than $5. per ounce to melt, assay and sell to the refiner. That puts $800 per ounce in their pocket in less than 24 hr.

    Market price for Ferrous scrap at:

    http://www.metalprices.com/FreeSite/metals/rmdas/rmdas.asp

     

     

  6. Anonymous says:

    6,000 tons at $50.00 per ton + $300.000.00.

    I bet this is the money that was used to pay off Matrix debt.

    If it is then can someone please explain what Ranston W is rejoicing about?

    • Anonymous says:

      Uh, what has the price of scrap in the US got to do with this? You’re not even quoting the right kind of scrap.

      • Anonymous says:

        I’m not sure what metal you are referring to. Ferrous metals include steel and pig iron (with a carbon content of a few percent) and alloys of iron with other metals (such as stainless steel). This should cover most of the metal in our scrap.

        Non-ferrous metals are more valuable.

        Aluminum price $.99 per lb -All that roofing and gutter debri

        Copper price $3.34 per lb – Wiring

        Platinum in the Catalytic Converters – Cars $1.739 per ounce

        Market prices the same anywhere in the world.

        At $250 per gross ton X 6,000 tones for just the scrap ferrous metal the international market value is about US $1,500,000. or CI $1.2 million.

        Even if you allow shipping cost of $200K (unlikely) you end up with value of over CI $1 million. My concern here is whether Cayman got a good deal on this transaction or not  and can do better on the next one.

    • Ummmm... says:

       The $300,000 is $50 per ton x 6000 tons.  Read the story…  Then back to math class…

  7. Ranston W. says:

    WELL DONE, UDP

    I am sure your critics will have everything else to conjure up and say, but this accomplishment and the other future accomplishments!

    IT IS HARD TO FIND PEOPLE WHO ARE THANKFUL!  They have nothing good to say – yet will dare not live anywhere else, but here

    :o)

    • Anonymous says:

      Ranston, XXXXX.  This would have happened if you or I were the leaders of government.  In fact, you and I would probably do a better job.  Do NOT give credit to the UDP for the sun rising, they had NOTHING to do with it!!