European cadmium prices firm, demand on the horizon
2013-10-01 20:41:54 [Print]
LONDON (Asian Metal) 1 Oct 13 – European cadmium traders expect to see new buyers entering the market from Central America over the next few weeks encouraging them to hold prices firm despite limited demand being witnessed this week. Sources noted stock holders have remained resilient to drop prices due to the costs seen earlier in the year when stockpiles where built, which has kept availability tight and could lead to firming prices when demand returns. Market participants confirm cadmium 99.95% at USD0.92-0.97/lb and cadmium 99.99% at USD0.95-1.00/lb.
A Western European trader confirmed they had received a firm offer for cadmium 99.99% at USD0.97/lb, but had not purchased as they were unable to close the deal to their customer with their required margin. He noted that Chinese and Indian buyers have recently withdrawn from the market due to fulfilling requirements for the short term and national holidays, but that new demand is expected from Central America over the next few weeks.
“We have customers in Mexico who will be in the market shortly as per their annual cycles and also some other Central American countries which have been seeing a lot of growth in their demand for a range of minor metals,” the source advised. “With the supply of cadmium remaining fairly tight and some stockholders sitting on material purchases at higher prices earlier in the year we could see an uptick in the cadmium prices once demand returns,” added the source.
The source confirmed they had closed a small deal for cadmium 99.95% to a South American buyer at USD0.94/lb.
A Second western European trader noted they had offered cadmium 99.95% and 99.99% at USD0.94/lb and USD0.99/lb respectively, but the customer had opted to wait and watch the markets. The source believes this to be a mistake on the part of the buyer commenting, “our customer had noted the drops in the cadmium market price over the past few weeks and thinks they will go a bit further, but there is likely to be some demand over the next few weeks from Central and South America and possibly from China after they return from the National Day celebrations this week, which is very likely lead to prices jumping back up.”
A Western European trader confirmed they had received a firm offer for cadmium 99.99% at USD0.97/lb, but had not purchased as they were unable to close the deal to their customer with their required margin. He noted that Chinese and Indian buyers have recently withdrawn from the market due to fulfilling requirements for the short term and national holidays, but that new demand is expected from Central America over the next few weeks.
“We have customers in Mexico who will be in the market shortly as per their annual cycles and also some other Central American countries which have been seeing a lot of growth in their demand for a range of minor metals,” the source advised. “With the supply of cadmium remaining fairly tight and some stockholders sitting on material purchases at higher prices earlier in the year we could see an uptick in the cadmium prices once demand returns,” added the source.
The source confirmed they had closed a small deal for cadmium 99.95% to a South American buyer at USD0.94/lb.
A Second western European trader noted they had offered cadmium 99.95% and 99.99% at USD0.94/lb and USD0.99/lb respectively, but the customer had opted to wait and watch the markets. The source believes this to be a mistake on the part of the buyer commenting, “our customer had noted the drops in the cadmium market price over the past few weeks and thinks they will go a bit further, but there is likely to be some demand over the next few weeks from Central and South America and possibly from China after they return from the National Day celebrations this week, which is very likely lead to prices jumping back up.”
Cadmium Ingot 99.99%min In warehouse Rotterdam
Unit:USD/lb
China cadmium ingot producers' inventory statistics by province by month
Unit: mt
