12th Rare Earth Summit

May 27-28, 2021
Hangzhou, Zhejiang, China

11th Aluminum Raw Materials Summit

May 20-21, 2021
Hangzhou, Zhejiang, China

9th Magnesium Summit

April 15-16, 2021
Hangzhou, Zhejiang, China

13th World InBiGeGa Forum

March 25-26, 2021
Hangzhou, Zhejiang, China

7th World Antimony Forum

June 13-14, 2019
Changsha, Hunan, China

7th Refractory & Abrasive Materials Summit 2019

May 23-24, 2019
Qingdao, Shandong, China

10th Aluminum Raw Materials Summit

May 16-17, 2019
Zhengzhou, Henan, China

11th Rare Earth Summit

May 9-10, 2019
Qingdao, Shandong, China

8th Magnesium Summit

April 11-12, 2019
Zhuhai, Guangdong, China

12th World InBiGeGa Forum

March 14-15, 2019
Zhuhai, Guangdong, China

6th World Manganese & Selenium Forum

May 21-22, 2018
Hainan Sanya, China
Hyun Cheol Park: Korean molybdenum converters need increase their efficiency and competitive power rather than invest in new production facilities
----Interview with Hyun Cheol Park, Director of FSM Co. Ltd
Located in Miryang-si, north of Busan, FSM Co. Ltd was founded in 2003 and, over ten years of business activities, continues to be a major player in molybdenum toll-trading business and bulk ferroalloys. Beside noble alloys business, the company has enlarged marketing and sales for bulk alloys from 2011.

Asian Metal: First, thanks for your time for granting this interview, and would you please introduce your company briefly and your main products and target markets?

Park: We specialize in supplying and selling ferroalloys for steel mills in Korea and overseas. The main materials we are dealing include moly oxide, FeMo, FeV, FeSi, SiMn etc. We have more than 10 years of experience in Ferro-alloys for supplying steel mills in Korea and Asia. Our main product is Ferromolybdenum; we have focused on sales to Asia and EU market.

Asian Metal: How do you evaluate the Korean molybdenum market in the last 6-12months vis-à-vis global demand as there is no more duty imposed on Korean-origin ferromolybdenum in Europe?

Park: There were too many converters and traders in Korea, so many companies have had a tendency of being entered tenders. It is explained well why the winner’s price was lower than international market price for the last couple of years. There has been a keen competition. Many companies had suffered from big losses for last two or three years. Now they cannot enter bid with low price anymore. Since last Q4 selling price in Korea came near to the international market price-range. I think that it is positive signal for restructuring of converters and coming back to normal market, not discount market. Some Chinese players have converted their moly oxide to FeMo in Korea because conversion cost is reasonable and FeMo made in Korea is no more duty imposed on Korean-origin ferromolybdenum in Europe and USA as per FTA.

Asian Metal: Given the fact that producers have proximity to the South East Asian market as well low conversion charge fee/cost, why do Korean converters and toll-traders not able to be more dominant in global ferromolybdenum supply?

Park: Actually the conversion charge in Korea is a little lower than in EU. But FeMo made in Korea have not been dominant in global market with such factors as small size capacities, products quality and low recognition of brand. In general converters have small capacities and deal a few moly oxide because of the limitation of capitals and the exposure of risk. In order to be a dominant player in global ferromolybdenum supply, producers should make their products with high quality and provide customers with the best quality product.

Asian Metal: And looking at the current numerous challenges in the molybdenum sector, molyoxide prices have kept at below USD10/lb for most of the previous year, do you expect strong demand in the coming months to make the market more active, or is that the price is low because many end-users now tend to negotiate long-term delivery with producers?

Park: Still in 2014, the stainless steel sectors do not good because they operate 65~75% of their production capacity. So I do not expect there will be strong demand this year. Most of the converters reduced their long term quantity this year because of bad market sentiment and big losses for a couple of years. End users must enter the spot market. So I think that market will become more volatile. It seems to be more difficult to find moly oxide with reasonable price in confusing market this year.

Asian Metal: We understand that construction companies in Korea are in negotiation with steel mills on the price of rebar for next quarter as the latter is asking for about 10-15/t in price increase of rebar. How would this impact the ferroalloys industry in general and molybdenum sector in particular?

Park: Now steel mills have been pressed by the low profit and the reduction of sales volume. They have the purchasing target price for bid and would try to find low cost materials. It will affect ferroalloys sector.

Asian Metal: Do you any positive trajectory for molybdenum and ferroalloys in Korea in the coming year?

Park: I have a positive sentiment for FeMo market because low price is disappearing and competition is not as fierce as in the previous years.
Japanese buying interest for spot moly oxide and FeMo is stronger than that of Korean this year. So it is a good opportunity to strengthen sales. However in order to increase sales to Japan, we have to overcome weak yen.

Asian Metal: Would you expect capacity expansion for Korean converters of ferromolybdenum so they could attract more toll-traders from China to take advantage of low conversion cost in Korea and then export same to Europe and avoid paying duty?

Park: Absolutely not. Most of the Korean converters’ heavy business losses have been incurred during last two or three years. So they do not want to expand production capacity but they want to increase their efficiency and competitive power to survive in the market. Now they cannot afford to invest in new production facilities.

Asian Metal: How about suggestion to industry operators and what should the market expect in the year?

Park: The market needs to be on recovery path this year. Otherwise the participants would fall into heavy debts with figures in the red. But I expect a slow recovery of ferroalloy industries. In a depressed market, it is advisable for participants to improve their service and meet customer satisfaction.

Asian Metal: Thanks for your time and we wish you good luck in your endeavors

Park: Thank you very much. I always enjoy the conversation with you on the market.