2006-12-18
China's ferromolybdenum prices have moved down further to $58-58.50/kg CIF Rotterdam, down compared with $59.50-60/kg quoted a week ago. Prolonged weak demand continues to exert pressure on prices, according to traders this week.

One local trader said he sold 20 mt of spot material at $58.50/kg CIF Rotterdam. "I am now offering the material at $59/kg on a CIF basis but buyers still think it's too expensive and they want lower prices," the trader said. Another trader said most spot offers this week were quoting at $58/kg CIF Rotterdam. "Prices in Europe are moving down to below $60/kg so they don't really need the Chinese material as they could get supplies from home at about the same price level," the trader said.

Traders said domestic ferromoly prices have also moved lower to Yuan 248,000-250,000 ($31,720-31,975)/mt ex-plant, down from Yuan 260,000-265,000/mt quoted a week ago. A source close to Chinese producers said: "Domestic prices are also down as demand has cooled down further closer to the holiday season. And more people are expecting some possible tax policy changes on ferromoly next year and they are very cautious about their new purchases," he said. The source expected to see prices move even lower in the near future due to weaker demand in the spot market.

Local traders said moly concentrate prices had also moved lower this week to Yuan 3,650-3,700/mtu, down from around Yuan 3,800/mtu quoted a week ago.

Meanwhile, traders in Japan received lower offer prices from China this week. "I received an offer from China at $57.50/kg CIF Japan. Offer prices from China are down but even with lower prices, there has been no spot deals reported," one Tokyo-based trader said. Another trader added that demand is still strong in Japan. "But we have enough stocks and so we don't need to buy now," he added.