Tuesday, February 2, 2010

Chinese ferromolybdenum traders refuse to refill inventories as steel mills maintain

2 Feb 10- According to traders, some local steel mills are overhauling now and may resume production after Spring Festival, so they will not refill their inventories in the near term.
Asianmetal(English) http://www.asianmetal.com FPBN
A Henan-based trader with 30t of ferromolybdenum in hand shared with Asian Metal that Anyang Iron & Steel has been overhauling since the beginning of February. "An official of this steel mill told me that they will resume production after Lantern Festival (February 28, 2010)," said the source.
Asianmetal(English) http://www.asianmetal.com 53F0
As a result, the source refuses to refill inventories in the near term since he is not sure when his customers will purchase raw material during the Spring Festival holiday. The purchase cost of the stocks is around RMB125,000/t (USD30.50/kg Mo), and he is not under pressure to sell out now. Moreover, he received offers of ferromolybdenum 60% at RMB145,000/t (USD35.38/kg Mo) from a Liaoning-based producer yesterday, adding that the concluded prices should be below RMB145,000/t (USD35.38/kg Mo) currently.
Asianmetal(English) http://www.asianmetal.com 47PY
With a monthly trading volume of 5t of ferromolybdenum, a Fujian-based trader reported that he didn't purchase the material these two weeks and will not enter the market before Chinese New Year holiday.
Asianmetal(English) http://www.asianmetal.com JC0T
"I have no financial pressure now and am going to prepare my holiday," said the source, confirming that some of their customers stopped production at the end of last month and may resume production in March.

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