FeMo market softening
2006-07-27 13:58:33 【Print】
BEIJING (Asian Metal) 27 Jul 06 - Although participants held a positive attitude towards molybdenum market in the past several weeks, with the price dropping these days, participants began believing that ferromolybdenum will move down in the coming weeks.
A source that sold several batches of ferromolybdenum for USD57.0-57.5/kg these days believes that ferromolybdenum market will soften in the coming weeks. "I think it is the stock of some Korea steel mills that makes the market become more active these days," said the producer. "The market will keep slow and quiet in the coming weeks."
According to source, it is workable to sell ferromolybdenum for USD57.0-57.5 FOB CMP to Japanese buyers, but neither European buyers nor Korea buyers can accept the price.
Another source that won a tender to supply Korean steel mills for ferromolybdenum around USD54.4/kg CIF disclosed that all the ferromolybdenum smelters who won the tender are Korea-based producers, because foreign suppliers can not accept the tender price at all.
The source want to do back-to-back trade for molybdenum oxide, but can not find molybdenum oxide 55-57% These days. They received offers around USD25/lb for molybdenum oxide 55-57% and USD24.8/lb for molybdenum oxide 51% from Chinese suppliers, but can not accept the price, saying " it is too risky to stock the material."
Another source who has about 3 containers of ferromolybdenum on water to Baltimore believes that Chinese ferromolybdenum price in U.S.A has softened a little these days. The source sold a batch of ferromolybdenum for USD57.5-57.8/kg ten days ago, but now they only expect to sell the 3-container material for USD57.2-57.3/kg in the coming days. Another buyers claimed they can get Chinese material at USD57.0-57.5/kg d.p or USD55-56/kg d.p.u. in Baltimore warehouse for prompt delivery.
Meanwhile, another source sold about two containers of ferromolybdenum for USD57.5/kg to Russia last week.
