China moly traders cut moly prices on poor demand, Mideast uncertainty

Molybdenum traders in China cut their selling price this week on weaker market sentiment stemming from a slowdown in overseas demand and concerns over the Middle East unrest, market participants said late Thursday.

"This week, we sold 20 mt Western oxide at $17.50/lb, another 20 mt at $17.75/lb, both in-warehouse Rotterdam and prompt cash, to European traders," a trader said. Last week, he sold a similar parcel at $17.90/lb ex-Tianjin warehouse.

"The Mideast crisis has dampened market sentiment this week, pushing down prices," he said.

Another trader said this week she sold 20 mt Western oxide at $17.45/lb CIF Busan, letter of credit at sight, to a South Korean trader.

"We offered $17.90-18/lb in-warehouse Rotterdam this week, but got no deal as market demand wasn't strong this week," a third trader said.

Yet another said his company has 20 mt of moly oxide in Europe, but would rather hold them to sell later when prices rebound.

Industry experts said as international moly prices stayed strong over December-January, the market was seeing a downward correction this week.

Platts assessed FOB prices for 57% moly oxide at $17.45-17.75/lb on Thursday, down from $17.90-18/lb last week.

Meanwhile, in North China, a trader sold 40 mt of Western ferromolybdenum at $44/kg, prompt cash, duty paid, to a European trader this week.

Another trader said she had 20 mt ferromoly in stock, but inked no deals as she preferred to wait.

Other moly traders in China said they would rather focus on moly oxide, rather than ferromoly, due to lack of opportunities for profit taking in the latter.