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Platts reported that steel demand from the automotive sector has prompted at least two Japanese steelmakers to exercise their options to increase contract volumes of molybdenum oxide for the third quarter of 2013. Some have asked for two to four additional cargoes between July and August.
Platts reported that steel demand from the automotive sector has prompted at least two Japanese steelmakers to exercise their options to increase contract volumes of molybdenum oxide for the third quarter of 2013. Some have asked for two to four additional cargoes between July and August.
As quoted in the market news:
Japanese steelmakers typically have annual term contracts for moly oxide running from April-March, with a minimum requirement to lift one cargo each month, and an option to take delivery of another two to four parcels each quarter. Each cargo comprises 20 mt of moly oxide.
‘If my customers need more moly oxide [for Q3], they will have to buy from the spot market as they have reached their limit [on the term contract],’ said one Tokyo-based trader.