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]
MOL Price at posting:
52.5¢ Sentiment: Buy Disclosure: Held