China moly prices riseChina moly prices rise on better demand, tracking Europe market
January 14, 2010
Chinese molybdenum market prices gained further this week on improved demand from the ferro-moly sector and rising international moly prices, said market sources.
Molybdenum concentrate is trading at 2,250-2,300 yuan ($329-336) per mtu this week, up from 2,100-2,150 yuan in the past week.
"Supported by higher European market prices, the domestic moly price has rapidly moved up, and many miners and traders are not in a rush to make deals," said a moly miner in Henan province.
With consumers returning to the market and traders looking to stock up, European molybdenum prices have been rising since the start of the year.
Drummed molybdic oxide prices climbed to $15-16 per lb in warehouse from $13.50-14 per lb last week, while western-grade ferro-molybdenum rose to $36-38 per kg from $33-34.50 previously (MB Jan 13).
Improved demand from the domestic ferro-molybdenum sector also contributed to higher moly concentrate prices.
"Due to the approaching Chinese New Year, steel mills will continue to purchase ferro-molybdenum," said a ferro-molybdenum producer in Huludao, Liaoning province, adding that they still have a lot of orders to complete before the holiday starting mid-February.
Ferro-molybdenum prices have gone up to around 150,000 yuan per tonne, up 10,000 yuan from last week, traders said.
Most market participants forecast that domestic moly market prices still have room to move up, looking at current European prices.
At $16 per lb, the European molybdic oxide price is roughly 2,800 yuan per mtu, said the Liaoning ferro-molybdenum producer.
"This is much higher than domestic prices of 2,400 yuan, so buyers will continue to purchase in the local market and give support to local prices," he said, adding that his company has not imported molybdic oxide recently.
However, despite rising overseas prices, it was still very difficult to export ferro-molybdenum from China, said ferro-molybdenum producers.
"Now ferro-molybdenum is trading at around 150,000 yuan per tonne in the domestic market, and it means our export costs are $44 per kg or above, including 20% export tariff. That is well above the current $36-38 price for western-grade ferro-molybdenum," said the Liaoning producer.
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