Ashish Arya
New York, NY (USA)
Role(s):
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Metal Recycling
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Startup
Location:
New York
Industry:
Wholesale
Year Founded:
2009
Number Employees:
1-10 people
Description:
: METREC is a company exporting recyclable steel scrap. There are more than 3500 small/medium steel melting furnaces in India, each using 5000 to 20,000 MT of scrap per month. Being in the scrap business for 40 years, we, and our family in India has business and personal relations with hundreds of such buyers for 40 years. We have had discussions with 10-15 such buyers. They are excited about working with us as it provides them a trusted partner to supply steel from the USA at comparatively lower prices by eliminating India based middlemen.
The way this industry works is:
1. Receive order from buyer in India at current market prices along with a 10-20% advance.
2. Buy scrap from sellers in the US by paying in full. The seller handles loading and shipping too.
3. Export the scrap to India in containers which take 30-35 days to reach port.
4. The buyer will then pay us the remaining amount and take possession of the containers. He is tied to the deal because of the advance he paid with the order.
Thus, Met-Rec is always in possession of its capital in the form of cash/steel, thus there is no credit risk. In the event that the buyer is not able to take delivery, he forfeits his deposit and we can then sell the steel in the open market.