Japanese ferromolybdenum prices dropping
2015-10-15 08:52:54 [Print]
BEIJING (Asian Metal) 15 Oct 15 - Owing to less ferromolybdenum 60%min demand and oversupply in international markets, Japanese ferromolybdenum 60%min market is impacted with falling prices as long-term contract deliveries are now being carried out at USD12.7-12.8/kg Mo d.d.p., down by USD0.50-0.60/kg Mo d.d.p. this week, just as low offers of Chinese-origin ferromolybdenum 60%min have been confirmed by import traders.
Mid-week, an official of a domestic ferromolybdenum 60%min grade material confirmed new delivery prices for the week and stated although the company’s monthly output is unchanged at 200-230t, revenue and profit projections are now unattainable in the rest of the year whilst future expansion projects have been put on hold. “Right now the market is down and unpredictable,” observed the source describing current market trend.
An official of a trading company with monthly ferromolybdenum 60%min imports of 80-120t confirmed low offers on Chinese-origin material. “We got different offers from suppliers at USD12.3-12.6/kg Mo CIF Japanese ports but there are no buyers and we just keep watching the market,” disclosed the source, adding the USD0.50/kg Mo price drop since the beginning of the week could indicate the market is yet to bottom-out.
In the same vein, molybdenum oxide prices are down by USD0.30/lb to USD4.50-4.70/lb ex Japanese ports and, except for domestic ferromolybdenum 60%min converters that are obligated to continue to take deliveries on schedule, a trader, like many others, disclosed that the company has suspended new imports because price continues to drop every other day.
“It’s a buyers’ market now but only if price is stable and suppliers are selling for cash to reduce inventory,” opined a molybdenum oxide trader stating the trend is unclear to determine if the market is soon to bottom-out, declaring, “It’s still risky to buy material for positioning.”
Mid-week, an official of a domestic ferromolybdenum 60%min grade material confirmed new delivery prices for the week and stated although the company’s monthly output is unchanged at 200-230t, revenue and profit projections are now unattainable in the rest of the year whilst future expansion projects have been put on hold. “Right now the market is down and unpredictable,” observed the source describing current market trend.
An official of a trading company with monthly ferromolybdenum 60%min imports of 80-120t confirmed low offers on Chinese-origin material. “We got different offers from suppliers at USD12.3-12.6/kg Mo CIF Japanese ports but there are no buyers and we just keep watching the market,” disclosed the source, adding the USD0.50/kg Mo price drop since the beginning of the week could indicate the market is yet to bottom-out.
In the same vein, molybdenum oxide prices are down by USD0.30/lb to USD4.50-4.70/lb ex Japanese ports and, except for domestic ferromolybdenum 60%min converters that are obligated to continue to take deliveries on schedule, a trader, like many others, disclosed that the company has suspended new imports because price continues to drop every other day.
“It’s a buyers’ market now but only if price is stable and suppliers are selling for cash to reduce inventory,” opined a molybdenum oxide trader stating the trend is unclear to determine if the market is soon to bottom-out, declaring, “It’s still risky to buy material for positioning.”
Molybdenum Oxide 57%min In port South Korea
Unit:USD/lb
China ferromolybdenum producers' inventory statistics by province by month
Unit: mt
