Chinese FeMo to start new year with quiet business
2005-01-04 09:18:45 【Print】
BEIJING(Asian Metal) 04-Jan-05 The soaring Chinese ferro-molybdenum market has concluded the year of 2004 with a relatively peaceful ending, due to the absence of the global consumers. Business is reported to keep on running very slowly, with the prices dipping in both domestic and the overseas markets.
As it was reckoned, the removal of the export rebate didn't bring a great pressure to a further price rise. In fact, ferro-molybdenum producers have recently lowered the quotations in view of the resistance of the foreign buyers.
Producer sources disclosed that the concluded price of cargoes next month didn't surge to a new high of $77/kg, but just remained at the prevailing level seen this month, at about $72-74/kg Mo FOB. Traders, meanwhile, commented to Asian Metal that it seems to be very hard to conclude the deal at over $73/kg Mo FOB, as very few buyers left in the market during the holidays.
For those suppliers, who are still watching the market development, the current conditions are not clear enough to figure out a proper quotation yet. A Xuzhou based converter revealed today:"I was told that the current quotations varied from $68-74/kg Mo FOB. That makes the market even more complex." However, it commented that $70/kg might be reasonable, but the low price at $68/kg is rather crazy. "At least, I have not found a clear clue for an apparent price decrease so far."he added.
Meanwhile, a Jinzhou based producer, which contracted the cargoes at as high as rmb355,000/mt early this week, told Asian Metal that it reduced the offer to just around rmb340,000/mt yesterday. "Influenced by the quiet overseas market, the domestic consumers are less active as well."explained the smelter.
Asked to analyse the market situation, an industry insider said that it would be very likely for the molybdenum prices to keep high with just slight dip early next year. Buyers are expecting an adjustment of Chinese molybdenum trioxide, especially because of the unchanged rebate rate. It is estimated that large amount of ferro-molybdenum were delivered this month to Rotterdam warehouses or the United States. That is no doubt an outstanding complement to the thirst western free market. Therefore, the insider reckoned that the quiet market probably would remain for a longer time and place the influence to the raw material prices spontaneously.
