Japanese buyers not interested in purchasing molybdenum

BEIJING (Asian Metal) 19 Jul 07 - As international molybdenum market keeps softening these weeks, with current prices around USD70/kg for ferromolybdenum 60% and USD30.5-31.5/lb for molybdenum oxide, Japanese buyers received offers of ferromolybdenum for USD71/kg from Chinese suppliers these days, but they did not buy the material. In Japan, ferromolybdenum price is around JPY9,000/kg(USD73.5/kg) in the local market.Asian Metal CopyrightJapanese consumers usually purchase ferromolybdenum and molybdenum oxide from foreign markets by long-term contracts and seldom purchases the material in spot market.Asian Metal Copyright

A trader in Japan who usually purchases about 10-20tpm of molybdenum products from China and sells the material to Japanese consumers received offers of USD31.0/lb for molybdenum oxide this week, but did not purchase the material.Asian Metal Copyright "We are not interested in purchasing the material now.Asian Metal Copyright "The summer holiday is coming, and the demand remains very slow in Japan," said the source.Asian Metal CopyrightA trader in Japan who usually purchases about 10-20tpm of molybdenum products from China and sells the material to Japanese consumers received offers of USD31.Asian Metal Copyright "We are not interested in purchasing the material now."

Meanwhile, another trader received offers of USD71/kg for ferromolybdenum 60% from China, but has not purchased any materials these days. "We send some offers to our customers, but they are not interested in purchasing the material," said the producer.

The source wants to purchase a batch of molybdenum oxide, but found molybdenum oxide supply remains a little tight now, and the price remains in the range of USD31-32/lb.

Japanese consumers usually purchase ferromolybdenum and molybdenum oxide from foreign markets by long-term contracts and seldom purchases the material in spot market. Another Japanese source received price indication of USD71-72/kg for ferromolybdenum from China, but did not buy the material.Asian Metal Copyright"Meanwhile, another trader received offers of USD71kg for ferromolybdenum 60% from China, but has not purchased any materials these days.Asian Metal Copyright

"Most consumers signed long-term contracts with suppliers," said the producer. "The market remains quite quiet these days.Asian Metal Copyright "The summer holiday is coming, and the demand remains very slow in Japan," said the source.Asian Metal Copyright"

When being asked about the market trend in July, the source said that it depends on European consumers. When European buyers come back to the market from summer holiday, molybdenum price will be bound to go up in September.