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Gold/Mining/Energy : The Molybdenum Discussion Board -- Ignore unavailable to you. Want to Upgrade?

To: fritxer who wrote (1177)	7/20/2005 9:22:15 AM
From: vireya	Respond to of 3267

China sets guidance price for FeMo exports at $76/kg Singapore 20 July 2005 11:51 China's molybdenum association has set its guidance price for ferro-molybdenum exports at $76 per kg fob, below the current free market rate, following a meeting in Beijing on July 20. “The guidance price is a result of a compromise after market analysis among the 12 committee members at today’s meeting in Beijing,” said a producer and trader from Huludao, northeast China’s Liaoning Province. Member companies from south China are generally less optimistic about market conditions in the coming months than northern producers, so the association’s guidance price is lower than the $80 per tonne fob price set by the Liaoning-based producers, he said. Liaoning producers held their own meeting on July 12 to discuss the market and to work out a floor price (MB, July 12). Another producer from Liaoning agreed that the association's $76 per kg guidance price is conservative. “[This] is the lowest possible export price based on current production costs, but I believe no one will be selling at such a low price, as actual export prices will [have to] include reasonable profits,” he said. Ferro-molybdenum from China is currently offered at $80 – 85 per kg fob compared to $81 – 85 a week ago, with transactions concluded around $80 per tonne fob, slightly lower than confirmed deals at $81 – 82 last week, according to traders. Despite some differences of opinion, most of the association's members are optimistic about China’s ferro-molybdenum export market in the second half of the year, according to two producers who attended the latest meeting. “The market demand remains strong, and we believe the price drop in the European market is temporary, as the traders there want Chinese exporters to offer even lower prices," said the Liaoning producer. There are rumours that the government may also cancel toll trading in the industry, he said (MB, June 14). "All these factors will support China’s ferro-molybdenum export price,” he said. Customs statistics show China imported 2,000 tpm of molybdenum concentrate and exported 1,400- 1,500 tpm of ferro-molybdenum on average for the first half of 2005, according to the Liaoning producer. Imports of molybdenum concentrate are expected to reach 20,000 tonnes this year, doubling the quantity of 2004. “This will be a good reason for the government to cancel toll trading in the molybdenum industry,” the producer said. Copyright © Metal Bulletin PLC. All rights reserved. To contact news desk Email editorial@metalbulletin.com Tel: .+44 (0)20 7827 9977 Fax: +44 (0)20 7827 6496