To insiders’ surprise, Chinese ferromoly market seems not to be stable this week and its price decreased to the lowest point in 2008. This week, the prevailing ferromoly price is around CNY 273,000 to CNY 278,000 per tonne, CNY 274,000 per tonne is quoted price for Jinzhou traders, CNY 275,000 to CNY 277,000 per tonne is for Luanchuan.

Ferromoly concentrates price is also declined to CNY 4,000 to CNY 4,050 per tonne. If steel mills hold on decrease ferromoly purchase price and there is no support to prevent such descending price, manufacturers will lower its ex work price once again.

According to www.ferro-alloys.com, one trader from Jinzhou has decrease ferromoly price to CNY 274,000 per tonne, while CNY 278,000 per tonne is for price in the early April 2008.

Domestic ferromoly market this month shows opposite compare with that of 2007. Ferromoly market kept on raising for same period 2007 and its price was CNY 278,000 to CNY 285,000 per tonne. Such a contrasted market can reflect the unbalance between supply and demand now. The most important reason for present market is gloomy international market. It is said that ferromoly export volume in the precious month of 2008 is lower than that of 2007.

According to www.ferro-alloys.com, the prevailing export price for ferromoly keeps at USD 77.50 to USD 78.50 per kilogram FOB, USD 77 per kilogram is for dealing price of Rotterdam. Due to fluctuant ferromoly price, steel mills change their purchase manner in order to avoid risks. So they incline to make long time contract with large ferromoly manufacturer.

(Sourced from Ferro-Alloys.com)