Chinese ferromolybdenum market stops falling

As some consumers are back to the market purchasing ferromolybdenum, and major suppliers adjust their offers up a little bit this Tuesday, Chinese ferromolybdenum appears to have bottomed out for the first time after two months' continuous price crash. Offers for ferromolybdenum 60% rebound slightly to RMB115,000-120,000/t (USD28.1-29.33/kg), and suppliers informed that there are more buying activities seen in the market.
It is learnt that a consumer in Inner Mongolia purchased 300t of ferromolybdenum at RMB106,000/t (USD25.9/kg) on a long-term contract recently, and the delivery time lasts until next March. It is disclosed that the consumer signed a long-term contract with foreign buyers, so they would like to assure the supply of ferromolybdenum. Though it is not a large quantity given the delivery time, it makes many people think that buyers are ready for positioning. One should realize that the demand has not come to the real recovery, and the final market direction still depends on the general demand from steel industry.
A Liaoning-based smelter with a capacity of 4,000tpy disclosed to Asian Metal that they sold small batches of ferromolybdenum 60% at RMB112,000-113,000/t (USD27.37-27.61/kg) onTuesday morning, and then raised their offer to RMB120,000/t (USD29.33/kg) in the afternoon. "We offered 10t of ferromolybdenum 60% at RMB120,000/t (USD29.33/kg) to a foundry, but the buyer didn't come back," said the source. "I don't think it would push up the price much, because the demand remains sluggish, but it is so good to see the price stop falling any longer."

The source indicated that mines resist low prices at present, offering RMB1,500-1,600/mtu (USD10.00-10.64/lb) for molybdenum concentrate, and the floor price should be above RMB1,400/mtu (USD9.31/lb). "The government investment of RMB4 trillion (USD586 billion) rebuilds people's confidence to some extent, and I hope the market could stabilize, so that we could resume normal production," said the source.
Another Liaoning-based smelter with a capacity of 100tpm told Asian Metal they concluded a 5t and another 10t of ferromolybdenum at RMB115,000/t (USD28.1/kg) this Monday, and they increased the offer to RMB120,000/t (USD29.33/kg) Tuesday. "I think the market has turned around, though buyers are watching after hearing the offer of RMB120,000/t (USD29.33/kg)," said the source. He also disclosed that a major supplier of molybdenum concentrate has raised their offer for the material to RMB1,600/mtu (USD10.64/lb), giving support to the price rebound for ferromolybdenum.
However, an Anhui-based smelter questioned the increased offer for ferromolybdenum, suggesting that the price could not go up in view of the sluggish demand.