5N Plus cancels some contracts, renegotiates others as bismuth prices drop

Speciality metals firm 5N Plus has cancelled some contractual purchases and attempted to renegotiate or extend the time-frame of others, after suffering big losses on falling commodity prices, sources have told Metal Bulletin.

Falling commodity prices pushed Canada-based 5N Plus to a net loss of $22.4 million for the first half of 2015, and Metal Bulletin understands it has written to suppliers to cancel some contracts or renegotiate or extend them. It has also asked suppliers to delay shipments as a way of extending contract periods.
Other firms have hired lawyers in an attempt to reach a compromise with 5N Plus, or to prevent their contracts being cancelled, market sources said.
“Some people have had their contracts postponed, some are having the terms renegotiated, and others have had them cancelled,” a trader in Asia told Metal Bulletin.

“[I think the reason...

Published

James Heywood

September 29, 2015

15:25 GMT

London