Ryan's Notes Commentary for Last Week.
[courtesy of Ken Reser]
Moly oxide prices were a touch higher last week while ferromoly
prices were unchanged, creating some concern
among traders and converters about margins. Traders
believe that oxide prices could firm further, but there is
little evidence to support this scenario other than the
prospect of a few roaster maintenance shutdowns
scheduled for August and September. Inter-trade oxide
sales were done early in the week at $24.50-24.60 per
lb, but later traders said they were unable to find oxide
below $24.75. A European mill in the market for
August/September reportedly received offers of moly
oxide at $24.50-24.70 per and was expecting to buy at
$24.40. By mid-week, A European consumer was bidding
$24.50. US consumers reportedly paid $24.75 and
slightly over $25 for oxide last week. A German mill
reportedly bought FeMo at $57 per kg, but traders said
they had booked consumer sales at $58.50. US prices
for both FeMo and oxide were at a premium to those in
Europe. Many traders are betting that prices could
again spike in late August as consumers return to the
market because material continues to be tight.
Kennecott's second-quarter moly production at Bingham
Canyon, UT, was 7.7-million lb compared to 9.7-million
lb in the first quarter and 7.3-million lb in the second
quarter of 2005. Kennecott's production plan calls
for mining high-grade moly zones through yearend,
sources said.
A rumor that the Eurofer (the European Confederation of
Iron and Steel Industries) and Euroalliages (the
European Ferroalloys Assn.) have agreed not to have
the European Commission conduct a five-year review
of the 22.5% anti-dumping duty on EU imports of
Chinese FeMo and instead suspend the duty when it
expires in February 2007 is false, sources say. The
European Commission already has requested that
interested parties prepare comments for the five-year
review of the duty, a spokesman for Eurofer said. He
confirmed that Eurofer and Euroalliages made presentations
in May (Ryan's Notes, May 15, p5) concerning
a proposal to temporarily suspend the duty, but neither
side has had a response from the Commission and none
is expected until after the summer holidays. |
