Japanese Steelmakers Saving Money by Using Ferromoly

Platts reported recently that some Japanese steelmakers are using more ferromolybdenum than molybdenum oxide in order to save on the production of chrome-moly steel for automotive applications.

As quoted in the market news:

So far this year, ferromoly had accounted for over 80% of the molybdenum feedstock consumption, sources at two electric arc furnace operators said, adding that price was a factor.

Supplier sources said moly oxide consumption by the two steel mills was almost nil this year with no spot cargoes having been bought. The mills consume 40-80 mt/month of molybdenum sourced from American and European suppliers on annual contracts.

The two mill sources said ferromoly was preferred because of lower costs.

Click here to read the full Platts report.