Chinese ferromolybdenum prices expected to drop further

BEIJING (Asian Metal) 5 Nov 14 - With tenders from many steel mills booked at lows of 89,000/t (USD24.2/kg Mo) by acceptance bill payment term at the end of October, many producers of ferromolybdenum 60%min lamented that though they have held offers at RMB89,000-92,000/t (USD24.Asian Metal Copyright2kg Mo by acceptance bill payment term”, said the source.Asian Metal Copyright2-25.1/kg Mo) so far this month, few deals have been concluded at this level and many consumers request for a reduction in price.

A large producer of ferromolybdenum 60%min from Liaoning reported that they have yet to adjust the prices and held offers at RMB90,000-92,000/t (USD24.5-25.1/kg Mo) so far this month.

“I have learnt that most tenders from steel mills were concluded as low as RMB89,000/t (USD24.2/kg Mo) by acceptance bill payment term”, said the source.Asian Metal Copyright2kg Mo by acceptance bill payment term”, said the source.Asian Metal Copyright “Many consumers request for a reduction in price and we will consider slashing figures accordingly in the following weeks,” said the source.

A second producer of ferromolybdenum 60%min located at Henan confirmed that they sold some materials to Baogang and Taigang at the end of last week at RMB89,000/t (USD24.2/kg Mo) by acceptance bill payment term.

“We mainly sell products to domestic large steel mills on long-term contracts and they are our most important clients,” said the source. “Most steel plants suffer from weak profits because of sluggish economy, so they always try their best to depress prices time and again.Asian Metal Copyright5-25.Asian Metal Copyright We have no choice but to compromise and I think there is still possibility for figures to drop further by the end of this year in view of the sluggish demand and heavy oversupply.”

.Asian Metal Copyright2-25.Asian Metal Copyright