FeMo 60% shows signs of softening
2006-02-02 10:01:23 【Print】
BEIJING (Asian Metal) 2 Feb 06 – Although Chinese are still on holiday, and ferromolybdenum is being concluded in the range USD63-65/kg Mo for either duty paid or duty unpaid material, reports from the market yesterday indicate ferromolybdenum 60%min is beginning to soften again.
A European trader reportedly received a container offer of ferromolybdenum 60%min from another European trader at USD60.50/kg Mo d.u. in warehouse Rotterdam, but the offer was flatly turned down. “There is no strong demand for the material, and many traders who still hold high inventory are trying to 'push' or shift the risks to unsuspecting buyers,” remarked the trader who, however, sold several smaller tons of ferromolybdenum 65%min around USD63-64/kg Mo d.p. and a container of molyoxide at USD25.50/lb in warehouse Rotterdam for prompt delivery.
Another trader who reportedly received a 20t offer of ferromolybdenum 60%min for USD62/kg Mo d.u. expressed fears on the low offer. "Given the weak demand in recent days, the material might soften next week when Chinese return to the market," said the trader. “The offer might turn out to be a ‘Greek gift’ at the end of the day.”
Looking at the current scenario, a trader who sold ferromolybdenum 20t 65%min for USD63.50/kg Mo d.p. to a customer thinks the next two to three weeks will determine how the market will be in this first quarter. “Although we just need to wait for Chinese to return to the market, I think most consumers are to a large extent covered or almost covered with many traders still holding enough material,” opined the trader.
One the future trend of ferromolybdenum 60%min, an observer said, “Whatever happens in China, being the driving force in the metal market, affects the whole economy in Europe as far as ferroalloys is concerned. So, it is very difficult to say which direction the market will go.”
