Ferromolybdenum price expected to go up further
2009-07-14 09:43:24 【Print】
BEIJING (Asian Metal) 14 Jul 2009 – Chinese suppliers mainly offer RMB135,000/t (USD32.94/kg) for the ferromolybdenum 60% currently, however, some deals have been concluded at RMB140,000/t (USD34.16/kg) already. Smelters estimate ferromolybdenum price will go up further in the coming days for the raw materials in domestic market keeps increasing.
A smelter in Liaoning, with the output of 400-500tpm of ferromolybdenum, offers RMB135,000/t (USD32.94/kg) for ferromolybdenum 60% and has sold about 6t of the material at this price since late last week.
"The price of the raw materials in domestic market remains increasing and supply is tight, so I estimate the price will increase to RMB135,000-140,000/t (USD32.94-34.16/kg) for ferromolybdenum 60% in the coming days,” said the source.
The source indicated that the ferromolybdenum price goes up quickly currently while the sale volume remains small. However, they do not hurry to sell all the stocks, expecting the price continues to go up in the coming days.
Another smelter in Liaoning, with the output of about 100tpm for ferromolybdenum, raised the offer from RMB133,000/t (USD32.45/kg) to RMB135,000/t (USD32.94/kg) for ferromolybdenum 60# on Monday. The smelter sold about 40t of ferromolybdenum at RMB133,000/t (USD32.45/kg) last week, but has no deals concluded at RMB135,000/t (USD32.94/kg) yet.
The source reported that a steel mill has purchased 200t of ferromolybdenum at RMB128,000/t (USD31.23/kg) last week. "I think the price will continue to go up due to the high cost. For example, we have to sell ferromolybdenum 60% at above RMB133,000/t (USD32.45/kg), if we buy the molybdenum concentrate at around RMB1,900/mtu (USD12.62/Ib)," said the source.
