Spot moly oxide trade picks up on South Korea on major tender...

Spot moly oxide trade picks up on South Korea on major tender

Tokyo (Platts)--1Jul2009
Spot molybdenum oxide trade was active in South Korea this week after one
steelmaker issued a tender to buy 100-200 mt of molybdenum oxide, local market
sources said Wednesday.

The steelmaker issued the tender Tuesday. According to local trading
houses, the steelmaker did not clearly set purchase volume or delivery time
scheme, but suggested that it was seeking 100-200 mt and was hoping to receive
the material by August.

This was the largest spot demand in the country this year, and had sent
Asian traders -- not just Koreans -- running after spot supply.

South Korean traders were seeking more than 100 mt of moly oxide in
total, and a few were able to buy, at $11-11.20/lb CIF.

Korean and Japanese traders also reported surging buying interest in
Europe, India as well as China.

European traders are believed to be buying for business post summer
holidays and may retreat after sourcing their requirement, most traders
were suggesting last month.

But spot supply is difficult to find and this is making traders work
"longer hours", said one trader. There may not be a summer lull as every one
is looking hard for spot because their usual suppliers have sold out, the
trader added.

Moves by Chinese producers could impact the market.

This week, active sellers in Asia included one Chinese producer. But most
others stayed focused on their home market.

If more Chinese producers become active in overseas markets, increased
supply may cause prices may stabilize. "I believe Chinese will start selling
when prices hit $12-13/lb," said one source close to a producer.
--Mayumi Watanabe, [email protected]