Chinese Ferromolybdenum market quiet
2006-07-28 14:32:42 【Print】
BEIJING (Asian Metal) 28 Jul 06 - With the hottest season of the year coming to China these days, some steel mills begin to spend their summer holidays, resulting in ferroalloy market more sluggish, especially for ferromolybdenum and ferrovanadium.
A source, with an output of 100tpm of ferromolybdenum 60%, who has not made any deals this week, believes that the market really remains sluggish now. "We made few deals last week but no deals this week," said the producer. "Steel mills seem to spend their summer holidays these days."
The source sold several tons of the material for RMB273,000/t(USD56.9/kg) last week and now offers RMB272,000/t(USD56.7/kg), but has not received any orders this week. Purchasing a batch of molybdenum concentrate for RMB4,050/mtu(USD23/lb) this week, the source believes that the price is a little bit higher than the current level, which is at most RMB4,000/mtu(USD22.7/lb) VAT included or RMB3,500/mtu(USD19.8/lb) VAT excluded.
In the export market, the source received an enquiry from Taiwan island and offered USD57.5/kg FOB CMP for 5t of the material, but the buyer can only accept USD57.2/kg FOB CMP.
Another source, with an output of 300tpm of ferromolybdenum, who made few deals this week thinks the market has become slow since last week. "With the coming of summer holiday, the demand becomes weaker and weaker," said the producer. "We only made few deals this week."
The source who quotes RMB270,000/t(USD56.25/kg) for the material, down from RMB272,000/t on Wednesday, received a orders from steel mills on Thursday, believing that the price might continue to drop, but not below RMB250,000/t(USD52/kg).
