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Low Moly Prices Likely to Prevent Chinese Stockpiling
Jun. 18, 2013 10:55AM PST
Industrial Metals Investing
Platts reported that Chinese traders, who normally stockpile molybdenum imports when prices near $10 per pound, are not likely to do so in the coming months as Chinese demand is expected to stay low.
Platts reported that Chinese traders, who normally stockpile molybdenum imports when prices near $10 per pound, are not likely to do so in the coming months as Chinese demand is expected to stay low.
As quoted in the market news:
‘The Chinese domestic market is slow, and so is overseas. There is only a narrow difference between prices to take advantage of the price arbitrage. Also if domestic prices go down, there is nowhere for imports to go,’ said one Chinese trader.
A second Chinese trader said: ‘We [have not] decided whether to re-stock a bit or not when import prices reach 10.50/lb. We will have to wait and see.’
‘Moly concentrate is at Yuan 1,480/mtu ex-plant ($240/mtu, or for 10 kg of moly contained in one ton of concentrate plus 17% value added tax) down from above Yuan 1,520/mtu two weeks ago. Domestic ferromoly prices fell to about Yuan 100,000/mt ex-plant, down about Yuan 10,000/mt from two weeks ago,’ the trader added.