FeMo 60% slides in Europe but dealers optimistic
2006-05-29 13:32:41 【Print】
BEIJING (Asian Metal) 29 May 06 - Although ferromolybdenum market was generally quiet last week, consumer requirement is expected this week for June delivery.
This is, however, coming against the backdrop of a 20t ferromolybdenum 60%min deal last Friday at USD57/kg Mo d.u. for prompt delivery, with some end-users in Turkey reported receiving offers at USD57.30/kg Mo d.u. in warehouse Rotterdam for prompt delivery.
A player who sold few truckloads last week around USD62-62.50/kg Mo d.p. is optimistic the market will see some more activity this week. "It has not changed much, and demand is still strong," said the source, adding "oxide is still firm at USD26/lb minimum."
Another trader reportedly sold a truckload for USD62.50/kg Mo .p. and some smaller quantity for USD63/kg Mo d.p. The source offered reasons why 65%min grade material will remain strong in the coming week. The first being that producers are not keen sellers. This is reinforced by the fact that there is very little material for spot business.
Although some traders were jittery last week taking profit on 60%min material, they may gnash their teeth in the coming days when price begins another round of upward price movement. Now there is material available but it will get tighter soon because demand for the material is good in Rotterdam, and in Chinese domestic market, it is even better to the extent that there is not much attraction to export the material. As it is now, there is not much new material coming into the market.
As at the time of going to the press last Friday, a source reported he sold 20t of 60% material for USD57/kg Mo d.u. and that his customers(end-users) reported receiving several offers at USD57.30/kg Mo d.u. Significant as it is, it does not represent the general trend as many dealers want USD60/kg Mo and above with few agreeing to accept USD59.80/kg Mo d.u., and a trader reportedly sold a truckload for USD62/kg Mo d.u. delivered next week.
Again, 2 major Hong-Kong traders reported they sold material on Friday at USD61/kg Mo d.u. in warehouse Rotterdam for prompt delivery. This tallied with another European trader who said the best offer he got, also on Friday from China is USD59/kg Mo FOB for prompt shipment, but another material was offered at USD58/kg Mo d.u. in warehouse Rotterdam. This material however, has 1.3% (about 10 times higher) phosphorous and 0.15% (as against 0.05%) copper contents which are reasonably too high and far in excess of standard requirement.
Moly powder and briquettes are in the same price range at USD26-26.30/lb, although it could be difficult selling briquettes for more than USD26.20/lb.
With seemingly unclear market, a trader said he has been waiting for two weeks to get a clearer picture of the trend of the trend, for it could go either way in the coming days.
