Chinese ferromolybdenum market firms up

BEIJING (Asian Metal) 18 Apr 06 - Chinese ferromolybdenum domestic market has rebounded since last weekend, with current ferromolybdenum 60% prices around RMB275,000-280,000/t(USD57-58/kg). Participants believe that the market will continue to move up in the coming ten days, before the May Day holiday. However, export market still remains slow, with current prices around USD53/kg, although some suppliers increased offers last week.

A Henan-based ferromolybdenum smelter, with a production capacity of 8,000tpy of ferromolybdenum, who now quotes RMB280,000/t for ferromolybdenum 60% will supply about 100t of the material for the price to Baotou Steel in the second half of April. "Ferromolybdenum domestic market remains very strong now, and we have received enough orders from domestic market.Asian Metal Copyright “We will wait for the market to turnaround.Asian Metal Copyright" said the producer.Asian Metal Copyright A Liaoning-based smelter, with about 3-4t of ferromolybdenum in stock, who quotes RMB280,000t for ferromolybdenum 60% complains molybdenum concentrate price remains too high.Asian Metal Copyright "I think the price will continue to go up in the coming weeks.Asian Metal Copyright "Now everybody knows that ferromolybdenum domestic price is rising, so molybdenum miners have already raised their prices accordingly.Asian Metal Copyright"

With an output of 400-500tpm of ferromolybdenum, the smelter has not made any deals on export market. Some foreign buyers bid USD53/kg for the producer's three containers of ferromolybdenum in Baltimore, but the smelter did not accept the bid.Asian Metal Copyright "We purchased molybdenum concentrate for RMB4,200mtuUSD23.Asian Metal Copyright "We are not anxious to sell the material," said the producer.Asian Metal Copyright "We purchased molybdenum concentrate for RMB4,200mtuUSD23.Asian Metal Copyright “We will wait for the market to turnaround.Asian Metal Copyright "We are not anxious to sell the material," said the producer.Asian Metal Copyright"

Meanwhile, as ferromolybdenum price keeps climbing up, molybdenum miners also increased molybdenum concentrate prices. A Liaoning-based smelter, with about 3-4t of ferromolybdenum in stock, who quotes RMB280,000/t for ferromolybdenum 60% complains molybdenum concentrate price remains too high. "We purchased molybdenum concentrate for RMB4,200/mtu(USD23.7/lb), so we cannot sell ferromolybdenum for anything below RMB280,000/t," said the producer.Asian Metal Copyright Some foreign buyers bid USD53kg for the producer's three containers of ferromolybdenum in Baltimore, but the smelter did not accept the bid.Asian Metal Copyright "Now everybody knows that ferromolybdenum domestic price is rising, so molybdenum miners have already raised their prices accordingly."

The producer expects to purchase another batch of molybdenum concentrate for RMB4,200/mtu, but received an answer from molybdenum miner that it is impossible for them to get molybdenum concentrate for RMB4,200/mtu now.