Chinese ferromolybdenum demand weak
2006-06-01 09:52:01 【Print】
BEIJING (Asian Metal) 1 Jun 06 - Chinese ferromolybdenum market still remains softening this week, with current prices around RMB285,000/t(USD59.4/kg) in domestic market and USD57-59/kg in export market. Participants reported that the demand is still weakening now.
An Anhui-based ferromolybdenum smelter, with a production capacity of 100tpm of ferromolybdenum, who made no deals this week, lament the current softening ferromolybdenum market and the relatively high molybdenum concentrate price.
The smelter has received an order from local steel mills, and the material will be delivered two weeks later, with concluded price flexible and dependent upon market situation at that time, but the producer fears that material will continue to drop in the coming two weeks, but now they have to purchase molybdenum concentrate for RMB4,300/mtu(USD24.4/lb).
"Molybdenum concentrate price remains too high now, and I think everybody is reluctant to purchase the material at the current level," said the producer. "I think the price is bound to drop, or all ferromolybdenum smelters have to halt."
Fearing the price will drop greatly in the coming weeks, the smelter sold out all its material for RMB290,000/t(USD60.4/kg) early this week.
A Liaoning-based ferromolybdenum smelter, with a production capacity of 300tpm ferromolybdenum, who sold about 5-6t of ferromolybdenum for RMB286,000/t(USD59.6/kg) this week believes that the demand is weakening now.
"The demand really stays weak now," said the producer.” We only sold several tons this week, and I think the market will continue to drop below RMB280,000/t(USD28.3/kg) in the coming days," Although the market remains softening now, the producer added: "Someone reportedly sold the material for RMB280,000/t these days, but we can not accept the price at all now."
