Removal of Chinese Moly Export Tax Boosts Metal, Scrap Exports

Hellenic Shipping News Worldwide reported that while China’s May 1, 2015 removal of its moly export tax has boosted exports of moly metal and scrap, the moly oxide and ferromoly markets have been “largely unaffected.”

As quoted in the market news:

The lifting of the 5% export tax on 99.9% moly metal had an immediate impact, with supply in China tightening as demand for exports surged, mainly from Europe.

June cargoes supplied by around 20 Chinese producers had sold out by end May and July cargoes were already fully booked this week, with the earliest supply currently seen available for August, a South Korean trader said.

The volume of China’s moly metal sales to Europe rose 20-30% after the tax was lifted, the trader added.

Looking at prices the news outlet states:

Moly concentrate prices fell 5-10% over April-June to currently stand at Yuan 1,000/metric ton unit, equating to $163 for 10 kg of moly contained in one metric ton of concentrate.

On Monday moly metal was being offered at $25-$26/kg CIF Rotterdam for August loading, compared with $24.60/kg CIF Rotterdam for July loading last Thursday.

Click here to read the full Hellenic Shipping News Worldwide report.