Increased buying pushes silicon higher

London 06 November 2009 14:38

Silicon outside of China traded higher on Friday as buyers come to the market to cover for the rest of year with the expectation that prices will firm further.

The range rose to €1,680-1,730 per tonne ($2,496-2,571) from €1,650-1,700 per tonne previously on increased sales and bullish sentiment.

One trader reported selling around 500 tonnes of silicon metal this week and noted more consumer enquiries from the automotive sector.

"We sold 553 and 441 between €1,700 and €1,800 [per tonne fca]," the trader said.

"Business has picked up this week. I think it will be like this until December," he said, adding that the spot market would remain firm given the tightness in supply.

Both Chinese and Western prices are on the rise, a second trader told MB, confirming a sale of 50 tonnes of 441 material at €1,730 fob.

"There isn't too much material around. I could have done more but it's not easy to buy [replacement] material," he added.

A consumer from the automotive sector reported buying silicon this week at €1,700 per tonne, but did not provide further details of the purchase.

More enquiries have turned into business, a European producer source said, having completed transactions of 100-tonne lots at €1,740 fob for 553 metal and €1,775 for higher grades.

"It seems like things are on the move up," he said, also attributing the rise in prices to a tighter market.

There have been some aggressive offers in the market, a third trader noted.

"I haven't done any business this week but we have been offered at around €1,700," he confirmed.

Antimony ingot,Antimony Trioxide falls under pressure from lower offers

London 06 November 2009 12:44

Antimony prices fell for the first time since mid-September on Friday as some smelters lowered their offers to secure sales.

Trioxide-grade metal dipped to $6,250-6,450 per tonne from $6,275-6,475 per tonne previously, while standard grade II antimony fell to $6,200-6,400 per tonne from $6,250-6,450 per tonne.

Prices had been holding firm on tight supply from Chinese suppliers following an accident at Hsikwangshan Twinkling Star in October that resulted in the closure of its mines.

Producers raised their offers in the wake of the closure, but consumers' reluctance to buy metal above $6,000 has put pressure on spot prices this week, traders said.

"The market price is a bit softer – some of the smelters have reduced their offers in order to make some sales," one trader said, reporting business at the low end of the new MB quotes.

Hsikwangshan's production is still suspended, sources said, but they agreed that weak demand from end-users is offsetting the effect of the closure.

Both major antimony consumers in Europe, Sica and Campine, have not been active in the spot market for several weeks, market participants said.

Lower spot prices for antimony ore are adding to the weakness in the metal market, the trader said.

"The ore price has been coming down for a bit," he said.

While buying from Sica and Campine has been slack, consumers in Japan and Korea are buying steady volumes of metal, Asian sources said.

Chinese ferromolybdenum price falls 7% on weak buying interest

Shanghai 29 October 2009 02:41

Chinese molybdenum concentrate prices fell 150 yuan ($22) per tonne, extending weeks of declines caused by poor demand.

Prices dropped to 1,900-1,950 yuan ($278-286) per mtu, from 2,050-2,100 yuan per mtu last week.

"We haven't purchased any concentrate recently as prices dropped very quickly and we also have some inventory which will last until next month," said a ferro-molybdenum producer in Huludao, Liaoning province.

Domestic ferro-molybdenum prices also dropping rapidly these days as no buyers want to buy, the ferro-molybdenum producer added.

"Most stainless steel mills are unwilling to buy ferro-molybdenum because of poor sales for their own products. And the anti-dumping issue on Chinese stainless steel pipe is also making them hesitant to buy ferro-molybdenum," said a major ferro-molybdenum producer in Luoyang, Henan province.

Ferro-molybdenum is now trading at around 126,000-131,000 yuan per tonne, down as much as 6,000 yuan from last week, according to producers.

While demand is thin, supply is more than adequate, trader said.

"There is a lot of concentrate and ferro-molybdenum inventory in the market now, so some ferro-molybdenum producers have cut operating rates to reduce output," said a major molybdenum concentrater producer in Shanxi province. Many molybdenum miners are producing at loss now, he added.

Another ferro-molybdenum producer in Liaoning province told MB his company has cut production and is only supplying long-time customers in order to maintain relationships.

Market sentiment was also hit by lower European molybdic oxide prices, the Huludao producer said, adding that he has no intention of buying molybdic oxide for the time being. MB's prices for drummed molybdic oxide fell to $10.50-11.50 per lb on Wednesday.

China imported 5,067 tonnes molybdenum concentrate and molybdic oxide in September, down 17% month-on-month, taking nine-month imports totalled 51,350 tonnes, according to customs.

Most market players expect further price declines as there is no sign of buyers returning in any great number to make purchase in the near future.

"Concentrate prices may drop to 1,700-1,800 yuan or even to 1,500-1,600 yuan," the second Liaoning producer said.

"In the current market, I reckon that concentrate prices could drop to 1,700-1,800 yuan in the coming months," said the Luoyang producer.

U.S. molybdenum prices drift lower but bottom seen

NEW YORK 04 November 2009 16:29

U.S. molybdenum pricing remains volatile, but many in the trade believe that a floor has been established on the back of another market dip.

Spot prices for molybdic oxide are now in a range of $10.50 to $11 per pound, down from $12.30 to $12.70 two weeks ago, while ferromolybdenum is between $12.75 and $13 per pound, down from $13.90 to $14.10, traders said.

Moly prices have been on a roller coaster ride for the past six months. Molybdic oxide, which hit a low of $8.55 a pound in April, climbed to $18.25 in August but since then has given back about 40 percent.

"Have we fallen to the floor? Everybody is trying to figure that part out," a U.S.-based trader said. "The Chinese haven't shown too much interest in purchasing but they're not sellers either, so it's a little bit difficult to gauge what is going on."

A second trader said there's not really any spot activity to speak of as most buyers are safely covered for the fourth quarter. "But there is a growing sentiment that we've reached a bottom, but the problem is that we're entering a seasonably slow period," he said. "Things are going to be pretty sleepy here from Thanksgiving through the holidays."

Raw steel production in the United States fell last week for the first time since June, with the average capability utilization rate easing back to 62.7 percent from 63.2 percent a week earlier, according to the American Iron and Steel Institute, Washington.

"It feels like the demand for steel, looking at the utilization rates, is slacking off a small bit," the first trader said. "But that's not unexpected; we've been anticipating that November might be softer than October."

A third U.S.-based ferroalloy trader was significantly more bullish. "This ship is starting to turn around," the trader said, noting that he made a number of sales of moly oxide at $11.25 per pound. "The Chinese have come in and are buying, contrary to what other people are saying. There's a little more buying going around, just in general. Consumers are seeing a really cheap price and are being enticed to buy. I'm not seeing the lower numbers in the range anymore."

The first trader said that he hadn't seen any significant Chinese buying activity and their buying decisions would drive prices in the fourth quarter. "If the Chinese aren't buyers, then the market's going lower just based on the fundamentals and the fact that fourth-quarter (demand) is shaping up to be pretty soft. If they are buyers, depending on the extent, it could be a flat market."

However, he noted that prices won't actually go up until consumers return in bulk to the spot market. Currently, nearly all ferroalloy purchasing is being conducted through long-term contracts.

"The trade is getting a little bit ahead of this with the thought that it's bottoming. The feeling is that people are cautiously optimistic for what is going to happen in the first quarter," the trader said.

Chinese ferromolybdenum traders eager to replenish

BEIJING (Asian Metal) 2 Nov 09 – As Chinese ferromolybdenum prices have been dropping for more than three weeks and steel mills remain placing orders on a need-only basis, participant believe that ferromolybdenum price will not rebound sharply in the rest of this year. Traders appeared more interested in replenishing their stocks more or less currently.
Asianmetal(English) http://www.asianmetal.com 332H
A trader from Hebei told Asian Metal that he will keep a wait-and-see attitude towards the ferromolybdenum market and will not sell the materials in a hurry this week, because he feels that dealers are ready to come back to the market for replenishing.
Asianmetal(English) http://www.asianmetal.com 7A38
"I think most traders have been watching and waiting for lowest prices for a long time, and the current price level has been more and more closing their interested level," said the source. "Though the price of ferromolybdenum has been continuously dropping for several weeks, I believe it is able to increase one day."
Asianmetal(English) http://www.asianmetal.com QL7S
The source still has 10t of the material in hand but does not hurry to sell the material to get cash, reporting that another trader has about 100t of ferromolybdenum in hand, which were bought at around RMB80,000/t (USD19.52/kg Mo) long time ago.
Asianmetal(English) http://www.asianmetal.com 58EN
A source from Beijing, with a production capacity of 350tpm of ferromolybdenum, confirmed that traders have been eager to purchase ferromolybdenum since the middle of last week. "We sold more than ten tons of ferromolybdenum 60% to traders at around RMB127,000/t (USD30.99/kg Mo) last week, and I think more and more traders will come back to the market in the coming days," said the source.
Asianmetal(English) http://www.asianmetal.com LFPJ
Furthermore, the source stopped offering for ferromolybdenum and ferrovanadium last Friday, because they were not sure with the future market but expressed that ferromolybdenum market hasn't touched the bottom yet and the price may drop further this week.

European FeMo market set to stir again

BEIJING (Asian Metal) 2 Nov 09 – With around 100t of ferromolybdenum material concluded to Korea and Taiwan late last week, the market firmed as it was difficult, if not impossible to find offers below USD25.50/kg despite its seesaw trend earlier in the week.
Asianmetal(English) http://www.asianmetal.com A943
Responding to the backward-and-forward motion the market witnessed last week, a European dealer with enquiries worth 15t on the table Friday decided to wait until wait until the trend becomes clear, hopefully at opening of trading session this morning, but indicated he might not offer material at below USD26.00/kg Mo d.p. and would expect a firm bid at a few cents lower. "It should curve up this week having been on the low side for long," said the source.
Asianmetal(English) http://www.asianmetal.com JRQY
Another source offered 5t at USD26.50/kg Mo d.p. Friday with extended payment term but was still awaiting final bid as at the press time. The source defended his offer of extended payment term of forty-five days alluding to fear it could be that some traders are covering for short again and any stir in activity might be short-lived. "I would hope this is a real bottom-out," said the source. "We'd have to see."
Asianmetal(English) http://www.asianmetal.com 2B07
In the same vein, molyoxide price have firmed and according to participants, it was difficult to get offers at below USD10.70/lb. A European dealer who had earlier dismissed an offer at USD10.90/lb by bidding the material at USD10.75/lb was caught unawares as the supplier had withdrawn it by close of business Friday.
Asianmetal(English) http://www.asianmetal.com E446
Generally, however, an insider was of the view there have been more talks than action and it could still be possible to get firm bids at USD10.70/lb, especially from dealers who need cash to meet pressing commitments.