AM Insight: Prediction on Chinese niobium market in Q1 2013
2012-12-28 08:57:18 [Print]
BEIJING (Asian Metal) 28 Dec 12 – Currently, Chinese niobium market keeps weak on the whole, with demand from most of the downstream fields such as steels industry, optical grade industry, cemented carbide industry and sputtering targets sectors keeping slow. Niobium concentrate prices stay weakly at USD18/lb CIF China
Influenced by the State’s real estate policy, Chinese market demand for steels does not show rebounding signs. However, the steels products stock is still much, so demand of ferroniobium from the Chinese steels industry keeps slow still . Although the Chinese steels sector is dim, the total import ferroniobium volume in the first ten months does not reduce compared with that of 2011, but more than 2,000t, indicating that Chinese steels plants still have enough stock of ferroniobium materials, so they will reduce their purchasing volume in Q1 2013. It is predicted that the import of ferroniobium will decrease sharply, with the prevailing prices staying at around RMB200/kg.
According to major optical grade niobium oxide consumers in domestic market, due to the weak optical glass field, they did not need to use optical grade niobium oxide in Q4 2012. And the total consumption in 2012, reduced by about 30% compared with that of 2011. From their orders signed with the downstream consumers, in the first half year of 2013, their demand for optical grade niobium oxide is also weak, Asian Metal predicts that the optical grade niobium oxide market will keep dim, and the prices will stay weakly at RMB390-410/kg.
The producers of metallurgical grade niobium oxide still have large amount of stock, but the downstream demand does not show better signs still, and there will be no large amount of deals appearing. Asian Metal thinks that currently, the metallurgical grade niobium oxide prices has touched the bottom, so even if the demand will not become better, the prices would not continue to decrease, but still stay at around RMB320-340/kg . For the producers with large amount of stock, it is a good opportunity for them to consuming their stocks, but the prices would not become better.
Demand of niobium bar from China is mainly for military use. Niobium bar producers note that currently, they do not receive new orders, but still carrying out the long term contracts signed long ago. Affected by the downward niobium oxide prices, the niobium bar prices stay at about RMB720-750/kg . Seeing from the export statistics, in the second half year of 2012, both the wrought niobium metal and unwrought niobium metal export volume reduced sharply compared with the first half year of 2012, also decreased obviously compared with the same period of last year . Insiders express that in the first quarter of 2013, the wrought niobium products export will continue the downward trend.
. Asian Metal predicts that in the first quarter of 2013, Chinese niobium market will not see obvious changes, with both niobium raw materials and niobium products prices staying at the current level. Influenced by the State’s real estate policy, Chinese market demand for steels does not show rebounding signs. However, the steels products stock is still much, so demand of ferroniobium from the Chinese steels industry keeps slow still . Although the Chinese steels sector is dim, the total import ferroniobium volume in the first ten months does not reduce compared with that of 2011, but more than 2,000t, indicating that Chinese steels plants still have enough stock of ferroniobium materials, so they will reduce their purchasing volume in Q1 2013. It is predicted that the import of ferroniobium will decrease sharply, with the prevailing prices staying at around RMB200/kg.
According to major optical grade niobium oxide consumers in domestic market, due to the weak optical glass field, they did not need to use optical grade niobium oxide in Q4 2012. And the total consumption in 2012, reduced by about 30% compared with that of 2011. From their orders signed with the downstream consumers, in the first half year of 2013, their demand for optical grade niobium oxide is also weak, Asian Metal predicts that the optical grade niobium oxide market will keep dim, and the prices will stay weakly at RMB390-410/kg.
The producers of metallurgical grade niobium oxide still have large amount of stock, but the downstream demand does not show better signs still, and there will be no large amount of deals appearing. Asian Metal thinks that currently, the metallurgical grade niobium oxide prices has touched the bottom, so even if the demand will not become better, the prices would not continue to decrease, but still stay at around RMB320-340/kg . For the producers with large amount of stock, it is a good opportunity for them to consuming their stocks, but the prices would not become better.
Demand of niobium bar from China is mainly for military use. Niobium bar producers note that currently, they do not receive new orders, but still carrying out the long term contracts signed long ago. Affected by the downward niobium oxide prices, the niobium bar prices stay at about RMB720-750/kg . Seeing from the export statistics, in the second half year of 2012, both the wrought niobium metal and unwrought niobium metal export volume reduced sharply compared with the first half year of 2012, also decreased obviously compared with the same period of last year . Insiders express that in the first quarter of 2013, the wrought niobium products export will continue the downward trend.