South Korean molybdenum dealers seeing sudden low buying interest
2014-10-20 08:56:44 [Print]
BEIJING (Asian Metal) 20 Oct 14 - At stable prices of USD26.5-27.0/kg Mo ex warehouse, South Korean ferromolybdenum 60%mim market saw few enquiries at close of business last Friday as would-be buyers seemed not in any more rush to make purchases either for direct usage by steel mills or by traders for positioning.
Whilst offers of spot ferromolybdenum 60%min remained limited because sellers’ target price is high at above USD27.0/kg Mo ex warehouse Busan, sources confirmed buyers’ restraints from making new purchases in the belief the rebound recorded early last week might have stalled. “The sentiment has changed, and it has moved from sellers’ to buyers’ market,” remarked a trader-source who received no biddings to unsolicited ferromolybdenum 60%min offer at USD27.0/kg Mo ex warehouse Busan.
A toll-trader close to end-users claimed two major steel mills currently have enough ferromolybdenum 60%min for consumption until mid-December because they have cut down production due to weak demand in the stainless steel industry, just as nickel market is seeing weak demand. “Many had expected announcement for ferromolybdenum 60%min tenders in the past week but nothing happened and this goes to show a revert to low buying interest,” observed the source with more than 40t-worth of ferromolybdenum 60%min for positioning and ready to consider bids at USD27.0/kg Mo d.d.p. and nothing lower than this.
In the same vein, offers of molybdenum oxide stood Friday at USD10.05-10.10/lb ex warehouse Busan but little buying interest was recorded. "I am a seller now; I'm no buyer and can't open my wallet over USD10.0/lb," remarked an official of a trading company arguing the probability of price softening again this week is half, adding it could be easier to get low unsolicited offers even though average molybdenum oxide price for September was about USD11.99/lb CIF Busan ports.
And for deals to foreign markets, there were low requirements from Europe but a trader reportedly concluded a 20t-container of molybdenum oxide to Indian end-user at USD10.1/lb CIF Indian destination ports. “There were enquiries from both India and within Korea but the latter were only for checking prices,” observed the source confirming lack on buying interest from Korean end-users.
Whilst offers of spot ferromolybdenum 60%min remained limited because sellers’ target price is high at above USD27.0/kg Mo ex warehouse Busan, sources confirmed buyers’ restraints from making new purchases in the belief the rebound recorded early last week might have stalled. “The sentiment has changed, and it has moved from sellers’ to buyers’ market,” remarked a trader-source who received no biddings to unsolicited ferromolybdenum 60%min offer at USD27.0/kg Mo ex warehouse Busan.
A toll-trader close to end-users claimed two major steel mills currently have enough ferromolybdenum 60%min for consumption until mid-December because they have cut down production due to weak demand in the stainless steel industry, just as nickel market is seeing weak demand. “Many had expected announcement for ferromolybdenum 60%min tenders in the past week but nothing happened and this goes to show a revert to low buying interest,” observed the source with more than 40t-worth of ferromolybdenum 60%min for positioning and ready to consider bids at USD27.0/kg Mo d.d.p. and nothing lower than this.
In the same vein, offers of molybdenum oxide stood Friday at USD10.05-10.10/lb ex warehouse Busan but little buying interest was recorded. "I am a seller now; I'm no buyer and can't open my wallet over USD10.0/lb," remarked an official of a trading company arguing the probability of price softening again this week is half, adding it could be easier to get low unsolicited offers even though average molybdenum oxide price for September was about USD11.99/lb CIF Busan ports.
And for deals to foreign markets, there were low requirements from Europe but a trader reportedly concluded a 20t-container of molybdenum oxide to Indian end-user at USD10.1/lb CIF Indian destination ports. “There were enquiries from both India and within Korea but the latter were only for checking prices,” observed the source confirming lack on buying interest from Korean end-users.
Molybdenum Oxide 50%min EXW China
Unit:RMB/dmtu
China molybdenum concentrate producers' sales to production ratio statistics by province by month
Unit: %
