For those tha care II :)Spot moly prices rise in northeast Asia on European buying spreeTokyo (Platts)--22Dec2010/804 am EST/1304 GMT
Spot prices for molybdenum oxide in northeast Asia have risen to$16.20-16.40/lb CIF Japan/Busan from $15.90-16.00/lb CIF last week, on strongbuying interest from European traders, market sources said Wednesday.
One South Korean regular spot buyer said offers were as high as $17/lbCIF Busan as sellers expect higher prices next month, on the back oftightening spot supply in Europe.
AND IT BEGINS>>>>>A government in Asia is said to have purchased around 500 mt of molyoxide this month, decreasing spot availability and thereby hitting Europeanconsumers and traders who rely more on spot supply, some sources estimated.
One European trader bought from a Korean trader 20 mt of moly oxide at$16.50/lb in-warehouse Rotterdam. But Asian buyers were paying 20-30 cents/lbless. Two Korean ferromoly plants and one trader reported buying a total of100 mt at $16.10-16.30/lb CIF Busan from China.
Supply of ferromolybdenum, which is produced from moly oxide, appears tobe tightening too.
One South Korean ferromoly plant, producing over 200 mt/month, said hiscompany has sold out all productions until February, due to strong buyinginterests coming from Europe as well as from local steelmakers.
"There are more and more inquiries for January shipments from Europe.
They don't have cargoes at Rotterdam," said the Korean trader.
Korean ferromoly plants have sold to Europe mostly at $39.50/kg CIFRotterdam this week, unchanged from the previous week. But some see pricesrising above $40/kg in coming weeks.
Two local steelmakers -- Posco and Posco Specialty Steel -- have issuedpurchase tenders for a total of 100 mt of ferromoly this week. One mill wasseeking 20 mt more, but had not been able to source its requirement due tolack of sellers, said one supplier source.
Some also cited recovery in global carbon and stainless steel demand inthe coming quarter for the higher moly products prices. Some, however, haddisagreed.
Scrap stainless steel supply remains abundant and remains a buyer'smarket, said one mill source.
Spot prices of ferrochrome, used with moly for production of SUS316 gradestainless steel, have not moved up.
A Japanese trader reported a $1.04/lb CIF Japan deal for 300 mt of highcarbon Indian-origin 60% ferrochrome, for February shipment. A second Indianseller was offering $1.11/lb CIF Japan last week.