December 02, 2008

Japanese spot ferromolybdenum prices bottoming out - Report

Platts citing Japanese trade and consumer sources reported that Japanese spot ferromolybdenum prices might be bottoming out now after a month of trading amid soft sentiment.

The report cited a Japanese trader as saying that Japanese steel maker sourced 40 tonnes of ferromolybdenum at USD 72 per Kilogram CIF Japan from southern China, higher compared with USD 71 per Kilogram to 71.50 per Kilogram CIF Japan level of last week. Other traders said they have been offered USD 73 per Kilogram to 74 per Kilogram CIF Japan from Chinese producers. He said “This had a psychological effect I have been tempted to close a deal, because the prices may rise further tomorrow."

A second Japanese trader said he might advance forward with his plan to hold a tender if offers continued to rise at a fast pace in coming days. He said “There is a general atmosphere for higher prices people giving many different explanations for higher prices. So is this just a sentiment, or based on a real change in demand and supply I need to be discreet."

Japanese traders and consumers said Chinese sellers had attributed reduced availability of molybdenum concentrate due to flood damages in China, steel material demand picking up in the country, active European buyers pushing prices up, among others.