Chinese FeMo holding firm
2005-02-17 09:03:26 【Print】
BEIJING(Asian Metal) 17-Feb-2005 Despite the decline prices in western market, Chinese ferro-molybdenum suppliers are still holding on the high offers at above $70/kg Mo FOB after the Lunar New Year holidays.
One of the leading producers in Huludao revealed to Asian Metal today that it has the quotation remained at about $73.5/kg Mo FOB at present. "We don't see it get concluded, but we have to insist on this level."said a company official. According to the source, the producer exported less than a hundred tonnes of ferro-molybdenum during the first month of 2005, a great down from the previous approximately 300 tonnes each month.
Although it has been well recognized that western materials were changing hands at slightly over $60/kg Mo seen last week, another major producer remarked that domestic ferro-molybdenum suppliers would just hold off for a while. "It has not broken $70/kg Mo yet."said the producer, "We'd like to see it hover around for more days." By the moment, the smelter tends to offer about $71/kg Mo for its material.
In view of the recent boost from the western suppliers, an industry insider remarked that such a bounce might not place much influence to the quiet Chinese molybdenum market, due to the unbalanced prices. Foreign consumers are still trying to push down the high quotations from China. While domestic producers are under the growing pressure of sales, due to the increasing stockings contributed by the slow business last month. But the ease from raw material suppliers is not apparent yet, and the expectation of the to-be-resumed demand is rather supportive to some market participants.
One of the leading producers in Huludao revealed to Asian Metal today that it has the quotation remained at about $73.5/kg Mo FOB at present. "We don't see it get concluded, but we have to insist on this level."said a company official. According to the source, the producer exported less than a hundred tonnes of ferro-molybdenum during the first month of 2005, a great down from the previous approximately 300 tonnes each month.
Although it has been well recognized that western materials were changing hands at slightly over $60/kg Mo seen last week, another major producer remarked that domestic ferro-molybdenum suppliers would just hold off for a while. "It has not broken $70/kg Mo yet."said the producer, "We'd like to see it hover around for more days." By the moment, the smelter tends to offer about $71/kg Mo for its material.
In view of the recent boost from the western suppliers, an industry insider remarked that such a bounce might not place much influence to the quiet Chinese molybdenum market, due to the unbalanced prices. Foreign consumers are still trying to push down the high quotations from China. While domestic producers are under the growing pressure of sales, due to the increasing stockings contributed by the slow business last month. But the ease from raw material suppliers is not apparent yet, and the expectation of the to-be-resumed demand is rather supportive to some market participants.
