InterestingAsian molybdenum oxide powder market divided following overnight fall
Tokyo (Platts)--16May2014/720 am EDT/1120 GMT
Some sellers of molybdenum oxide powder in Asia have lowered offers Friday, following falls during European trading hours Thursday, while others kept their offers at $14.70-14.80/lb CIF, market sources said.
Platts assessed moly oxide at $14.10-14.55/lb Thursday, down from $14.20-14.80/lb Wednesday, following sales at $14.10-14.45/lb delivered/in-warehouse reported in Europe.
A Chinese trader said he sold three containers of powder at $14.70/lb in-warehouse Rotterdam Thursday, and subsequently lowered offers to $14.50/lb during late European time. The company however, rejected a bid at $14.15/lb.
"The change of market sentiment may be due to London Metal Exchange nickel prices falling," said a Japanese trader. The LME three-month official nickel prices fell to $18,600-18,650/mt Thursday, from $20,700-20,725/mt Wednesday.
A South Korean consumer source said a Chinese trader had suggested a possible sale at "around $14/lb," which was declined by the consumer.
Some Asian sellers however, continued offering at $14.70-14.80/lb CIF Japan Friday, on the basis of supply remaining tight.
One South Korean ferromolybdenum plant and a Japanese ferromoly plant are running at full capacities, plant sources said. The source from the South Korean plant said orders were fully booked until June.
"Japanese stainless and specialty steel makers are busy too and they are coming out to the spot market for more supplies because they need to make more 316-stainless steel. It is like spot orders are never drying up," a second Japanese trader said.
"The recent spike in the spot moly prices were related to the rise in the nickel prices that triggered more stainless steel demand. I wonder how the nickel price moves will impact the market," said the first Japanese trader.
--Mayumi Watanabe, mayumi.watanabe@platts.com
--HongMei Li, hongmei.li@platts.com
--Edited by Irene Tang, irene.tang@platts.com