RE: RE: RE: Moly pricesGotta admire their tenacity!!!!!!!!!!!!!!!!!!!
Japan's moly demand rises on Tepco plans for thermal power generationTokyo (Platts)--21Apr2011/528 am EDT/928 GMT
Tepco, or Tokyo Electric Power Company's plans to constructing thermalpower generation units to beat Japan's power shortage following its ongoingnuclear crisis is creating fresh demand for molybdenum products, marketsources said Friday.
Tepco plans to construct a total of 109 new thermal power generatingunits at its three thermal power generating facilities, the company said onApril 15.
Production of superalloy plates used for gas turbines has started thismonth in western Japan, for the turbines to be operational by July, accordingto one steel mill source.
Tepco plans to bring on stream 102 units of 1,100 kW gas turbines at theSodegaura facility in Chiba prefecture by July.
Two larger 334,000 kW gas turbines are expected to go on stream at theChiba facility in the Chiba prefecture in August.
One more 334,000 kW gas turbine will start running in summer 2012, alsoat the Chiba facility.
"The turbine manufacturer has not placed orders for superalloy for someturbines," said the second mill source, suggesting a further boost in themoly demand in the coming months.
Meanwhile, four diesel turbines to be deployed at Tepco's Anegasakifacility in the Chiba prefecture will become operational this month.
"Manufacturers had turbine inventories, which were delivered to Tepcostraight away," the source said.
The superalloy in use is believed to be nickel based, which may containup to 1% of molybdenum and 14% chrome.
Japanese steelmakers through several trading houses have ordered atleast four container loads of moly oxide from the spot market in the last twoweeks, according to Platts' survey.
Among the four identified, one container-load is believed to be relatedto the Tepco demand, while the three identified by Platts were for restockingfor the new financial year and not directly related to the superalloyproduction.
While the Tepco demand generates new demand for moly, this increase willbe set off by a sharper decrease triggered by automotive output cuts, sourcessaid.
The impact of the automotive output cut is far greater than the Tepcodemand, said traders, adding that in a longer term of one year, Japan's molydemand is seen to be in a decline.
Currently, moly usage for the automotive components such as crankshaftsand bearings has been mostly sustained at the "pre-quake levels", as thesteel mills aim to build up product inventories ahead of power shortages overJuly-September hitting industries in east Japan.
But the Japanese automotive output is set to fall, as the automakers arerunning vehicle assembly plants at 50% rates, or less, this month. Aluminumindustry sources which supply directly to automakers estimate recovery tonormal operating rates will be in the fourth quarter.
Up to 1,000 mt/month of molybdenum oxide and ferromoly are believed tobe in use for chrome-molybdenum steel, also known as SCM, according to localtrade and steel mill sources. The steel contains 0.15-0.3% moly.
Japan's monthly moly consumption is around 2,500 mt/month.