Wolverine’s option for buying cathode limited, told to pay cash
Nov 22, 2010 | 01:36 PM
| Meredith Mazzilli
Wolverine Tube Inc. (WTI) will have to pay cash up front to source copper cathode amid uncertainty regarding the status of its relationship with Exeon Inc., market participants said.
"Eventually they're going to have to come in and buy copper," one physical copper trader said. "They're going to have to do it through Exeon or they're going to have to pay cash."
Even before filing for Chapter 11 bankruptcy protection, WTI's financial difficulties prevented it from getting credit lines with brokers to be able to hedge and the company relied on Exeon to supply the majority of its copper cathode—some 45.5 million pounds in the first nine months of this year—and provide hedging facilities.....
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