Participants see FeMo price increasing
2006-03-17 17:51:31 【Print】
BEIJING (Asian Metal) 17 Mar 06 – Although the market is currently quiet and no reports of any deal at USD57/kg Mo for either 65%min and 60%min material yet, with ferromolybdenum material already undervalued now at USD56-57/kg Mo d.p. in warehouse Rotterdam due to the fact that molyoxide is mainstream high at USD23.5-24/lb, coupled with reports that there are less and less offers coming from suppliers/producers now, some participants are of the view that ferromolybdenum prices may go up any moment from now.
The above beliefs is reinforced by the general views in the market that CIS countries, Russia and South American countries are not well covered for second quarter production although many are still holding off. As a result, many see prices not at least falling in the next couple of days when more buyers are expected in the market.
A European converter cum trader who yesterday reportedly sold 10t of 65%min material at USD56.70/kg Mo d.p. said, “I expect prices to firm in the coming week as we believe the CIS and other consumers of 60%min are not well covered.”
However, it is still very much unclear whether these consumers will accept any price above the western material, which now appears to be dictating the prices although Chinese suppliers offer the material for as high as USD56-59/kg Mo d.u. in warehouse Rotterdam for prompt delivery.
Another trader who sold 10t of 65%min for USD56.50/kg Mo d.p. but heard a truckload was concluded at USD56/kg Mo d.p. in warehouse Rotterdam said he expects market to be active in the coming week. “It is obvious the current ferromolybdenum price is undervalued, and I do not see how prices will soften when market becomes active, something that did not happen when it was quiet.
