Chinese ferromolybdenum prices edge down under pressure
2016-03-04 20:14:30 [Print]
BEIJING (Asian Metal) 4 Mar 16 - Recently, steel mills have continued to force down tender prices for ferromolybdenum, and mainstream prices for Chinese ferromolybdenum 60%min edged down under pressure to RMB59,000-61,000/t (USD15.0-15.5/kg Mo) by cash payment this week, down by RMB1,000/t (USD0.25kg Mo) from last week. As market transactions have been sporadic after the Chinese New Year holiday and some producers still hold abundant stocks coupled with tender prices from steel mills declining successively, it is expected that mainstream prices for ferromolybdenum are likely to slip further.
A ferromolybdenum producer based in Northeast China stated that they lowered prices for ferromolybdenum 60%min by RMB1,000/t (USD0.25/kg Mo) to USD59,500-60,000/t (USD15.1-15.3/kg Mo) by cash payment this week, and concluded 50-60t. “Prices for ferromolybdenum have dropped recently and customers are more active this week than before,” the source said. He continued that prices for the domestic ferromolybdenum are still fluctuating with consumers remaining cautious about purchasing, so it is anticipated that prices for ferromolybdenum will persist in sliding.
The source with an annual capacity of 6,000t of ferromolybdenum produced around 250t in February, unchanged from January. Currently, they hold roughly 250t of ferromolybdenum in inventory.
“We lowered prices by RMB3,000/t (USD0.76/kg Mo) this week to RMB59,000/t (USD15/kg Mo) by cash payment ex works. As the market has seen limited transactions in the past weeks, prices are firm. However, more consumers begin to purchase this week and prices move down as well,” another producer based in Northeast China said. They have sold about 60t so far this week. He thought this batch of invitation for tenders has not come to an end, and large-scale steel mills will persist in attempting to force down prices.
The source with an annual capacity of 4,200t of ferromolybdenum keeps the monthly output stable at a level of 150-200t, holding about 70t of ferromolybdenum in inventory for the time being.
A ferromolybdenum producer based in Northeast China stated that they lowered prices for ferromolybdenum 60%min by RMB1,000/t (USD0.25/kg Mo) to USD59,500-60,000/t (USD15.1-15.3/kg Mo) by cash payment this week, and concluded 50-60t. “Prices for ferromolybdenum have dropped recently and customers are more active this week than before,” the source said. He continued that prices for the domestic ferromolybdenum are still fluctuating with consumers remaining cautious about purchasing, so it is anticipated that prices for ferromolybdenum will persist in sliding.
The source with an annual capacity of 6,000t of ferromolybdenum produced around 250t in February, unchanged from January. Currently, they hold roughly 250t of ferromolybdenum in inventory.
“We lowered prices by RMB3,000/t (USD0.76/kg Mo) this week to RMB59,000/t (USD15/kg Mo) by cash payment ex works. As the market has seen limited transactions in the past weeks, prices are firm. However, more consumers begin to purchase this week and prices move down as well,” another producer based in Northeast China said. They have sold about 60t so far this week. He thought this batch of invitation for tenders has not come to an end, and large-scale steel mills will persist in attempting to force down prices.
The source with an annual capacity of 4,200t of ferromolybdenum keeps the monthly output stable at a level of 150-200t, holding about 70t of ferromolybdenum in inventory for the time being.
Molybdenum Oxide 57%min CIF China
Unit:USD/lb Mo
China ferromolybdenum producers' sales to production ratio statistics by province by month
Unit: %
