China's GEM Is to Stop Buying Cobalt From Glencore
- Glencore trying to negotiate with contracted buyers: person
- Company warned last week that price slump led to lost sales
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Chinese battery maker GEM Co. has halted buying cobalt from Glencore Plc after prices fell below the agreed level under a three-year contract signed earlier this year, according to a person familiar with the matter.
Cobalt prices have dropped more than 25 percent since a peak in April amid growing concerns that too much supply has been brought online in response to surging prices. Last week Glencore warned that some buyers in China reneged on contracts after seeing prices plunge, forcing the company to renegotiate the commercial terms of the deals.