European FeMo dealers appear liquidating material
2009-10-19 18:09:32 【Print】
BEIJING (Asian Metal) 19 Oct 09 – According to market sources, although it is yet to be a general trend, some ferromolybdenum traders have liquidated material for as low as USD26.50/kg Mo d.p. in warehouse Rotterdam for prompt release as a result of liquidity problem.
A European dealer privy to around 10t-deal of ferromolybdenum material confirmed bid price at USD26.50/kg Mo d.p. but quickly added it originated from a trader rather than from producers whose offers remain in the range of USD28.50-29.50/kg Mo d.p. “For now it remains a one-off deal,” said the source adding producers are not yet inclined considering bids even at USD27.50/kg Mo d.p.
Another European dealer informed Asian Metal he received an offer last Friday at USD27.00/kg Mo d.p. but because he had no enquiries, he could not make any bid, adding, “it is not wise to buy material when prices seem to be going down” except on a back-to-back basis. The source has some inventory but not under any pressure to liquidate the material and expects to wait to sell material at around USD30.00/kg Mo d.p.
And with not so much activity, many dealers are confused if ferromolybdenum would continue to see coirrections downwards because of the fact that consumers do not want to buy for forward delivery and believe they could get lower bids for each successive purchases.
However, an insider argued that the above assumption may not hold for, even though molyoxide prices have also soften to just above USD12.00/lb, it remains higher than ferromolybdenum price and the fact that ferromolybdenum producers are not offering material at low quotations, it remains to be seen how molyoxide price could go for below USD12.00/lb, all things being equal.
