As private talks continue between potential buyers of Hernic with Mitsubishi and ELG, Hernic has been trying to sell its charge chrome through 2018. Mitsubishi was hoping to have to deal finalized before the end of March and most analysts agreed that if no deal was reached, the plant would be closed then. “Hernic can sell through 2018, but if they close down and declare force majeure, that’s it,” one analyst pointed out. “Who does the buyer sue? At best Hernic can only realistically offer spot material.”
Likewise if the plant is sold, which is growing more unlikely with each price decrease, will the new owner be willing to accept the contracts Hernic negotiated now?