European praseodymium oxide market outlook bleak

LONDON (Asian Metal) 22 Mar 13 – European praseodymium oxide markets remained largely inactive during the past few weeks as cautious buyers watched for market developments and relied upon small purchasing orders.Asian Metal Copyright “End users are not going to build up stockpiles when they think demand for their respective downstream products could suffer given the grim EU economic outlook.Asian Metal Copyright While local sources involved in the market admitted that this year’s Q1 buying activity has seen improvement over that of Q1 2012, they added that ordering quantities still remain small as most end users are eager to avoid exposure to possible price declines in the near future.Asian Metal Copyright The source, who deals with 30-40 tons per year, concluded a transaction for approximately 5 tons of praseodymium oxide this Thursday in the USD65kg range.Asian Metal Copyright Local sources believe downstream demand will remain stagnant during the next few weeks as buyers delay purchasing activity in an effort to capitalize on anticipated price declines.

As suppliers and traders compete over a limited amount of demand, European sources believe praseodymium oxide prices, currently hovering in the USD65-70/kg range, will see both marginal and gradual price declines.

A Western Europe based source believes praseodymium oxide markets will continue to see sluggish demand during the next several weeks. The source, who typically deals with 15-20 tons of praseodymium oxide per year, received offers for praseodymium oxide this Wednesday in the USD67-70/kg range.

According to the source, the majority of clients are unwilling to place orders due to concerns about future price stability. She explained expansion to the current production output level will generate downwards pressure on current rates.Asian Metal Copyright The resumption of production is bound to happen, and when it does the additional supply will likely force down prices even further,” remarked the source.Asian Metal Copyright “Our clients understand China will not keep its processing facilities closed forever.Asian Metal Copyright We are having to drastically slash margins in order to meet our buyers’ price requirements,” commented the source.Asian Metal Copyright The resumption of production is bound to happen, and when it does the additional supply will likely force down prices even further,” remarked the source.

A second Western Europe based source agreed praseodymium oxide markets are unlikely to see any spikes in demand before the end of the quarter. The source, who deals with 30-40 tons per year, concluded a transaction for approximately 5 tons of praseodymium oxide this Thursday in the USD65/kg range.

The source, who primarily caters to end users in the ceramics industry, explained that there is little incentive for buyers to commit to large orders given the weak EU economic outlook and the likely scenario of further price depreciation. “End users are not going to build up stockpiles when they think demand for their respective downstream products could suffer given the grim EU economic outlook.Asian Metal CopyrightLONDON Asian Metal 22 Mar 13 – European praseodymium oxide markets remained largely inactive during the past few weeks as cautious buyers watched for market developments and relied upon small purchasing orders.Asian Metal Copyright We are having to drastically slash margins in order to meet our buyers’ price requirements,” commented the source.
.Asian Metal Copyright While local sources involved in the market admitted that this year’s Q1 buying activity has seen improvement over that of Q1 2012, they added that ordering quantities still remain small as most end users are eager to avoid exposure to possible price declines in the near futureAsian Metal Copyright