Chinese FeMo hard to dip further
2005-01-27 09:14:09 【Print】
BEIJING(Asian Metal) 27-Jan-05 Chinese ferro-molybdenum producers started to hold up again these days, although there is still little activity reported this week. Industry insiders indicated that it seems hard for the prices to dip much further in the rest a few days before Chinese Lunar New Year.
Influenced by the thin transaction, prices of Chinese ferro-molybdenum in both domestic and overseas markets went down to about US$73-74/kg Mo and rmb350,000-360,000/mt respectively, from the previous $79-80/kg and rmb370,000-380,000/mt, seen in the second week of this month.
While, with the approaching Spring Festival holidays, producers are said to suspend the business and have the prices held firmly by the moment.
A Luanchuan based producer revealed to Asian Metal today:"We are asking rmb370,000/mt for ferro-molybdenum, and there is not a single penny negotiable." The spokesperson admitted that it has not reached any deal since mid last week, but in the consideration of the unsatisfied market demand and the tight raw material supply, the company would rather stop the production than lower the quotation and bare the risks.
The recent softened western market conditions hindered the buyers from placing the orders. Consequently, the bullish Chinese ferro-molybdenum price was pulled down to just about $73-75/kg Mo FOB. However, only small amount of materials on this level is available. "I think some producers might take the offer at about $73-74/kg Mo, but I can say there wouldn't be a lot."a Xuzhou based converter remarked.
Considering the strong market foundation, which is not changed basically yet, most domestic suppliers would not like to sell the cargoes at the current relatively low prices in large quantity. Rumor about the entire halt of producers in Huludao is disturbing the market participants as well. However, it is estimated that the prices, if to rebound in the second half of next month, is more likely to stand at about $75-78/kg, instead of breaching the former target of $80/kg.
Influenced by the thin transaction, prices of Chinese ferro-molybdenum in both domestic and overseas markets went down to about US$73-74/kg Mo and rmb350,000-360,000/mt respectively, from the previous $79-80/kg and rmb370,000-380,000/mt, seen in the second week of this month.
While, with the approaching Spring Festival holidays, producers are said to suspend the business and have the prices held firmly by the moment.
A Luanchuan based producer revealed to Asian Metal today:"We are asking rmb370,000/mt for ferro-molybdenum, and there is not a single penny negotiable." The spokesperson admitted that it has not reached any deal since mid last week, but in the consideration of the unsatisfied market demand and the tight raw material supply, the company would rather stop the production than lower the quotation and bare the risks.
The recent softened western market conditions hindered the buyers from placing the orders. Consequently, the bullish Chinese ferro-molybdenum price was pulled down to just about $73-75/kg Mo FOB. However, only small amount of materials on this level is available. "I think some producers might take the offer at about $73-74/kg Mo, but I can say there wouldn't be a lot."a Xuzhou based converter remarked.
Considering the strong market foundation, which is not changed basically yet, most domestic suppliers would not like to sell the cargoes at the current relatively low prices in large quantity. Rumor about the entire halt of producers in Huludao is disturbing the market participants as well. However, it is estimated that the prices, if to rebound in the second half of next month, is more likely to stand at about $75-78/kg, instead of breaching the former target of $80/kg.
