European ferroalloy downturn.

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LONDON (Asian Metal) 03 FEB 13 – European ferroalloy sources reveal a down turn in the market price of ferromolybdenum 65%min.

European distributor of ferromolybdenum 65%min has released falling August figures for the ferroalloy between USD29.00 – 30.60/kg with a consistent fluctuation of approximately USD ± 0.60/kg expected.

Current market sentiment increases the probability that prices will be exposed to a further decline tied in to European financial difficulties. Over the past three days the market price of ferromolybdenum 65%min has experienced rapid declines.

Ferromolybdenum 65%min value dropped to USD29.85/kg and later that evening prices fell further to USD29.50/kg, amongst rumours that one European trader was able to purchase a lorry load of Western material at USD29.00/kg.

The source explained “I would suspect that the European financial difficulties will remain, and this will impact upon the demand for both standard grade and high grade steel around Europe.”

As a result, he is still expecting lower figures based upon the number of orders they are receiving suggesting lower demand and over supply of material.

However, on future trends, he is “hoping that figures could consolidate during late August when the larger steel mills in Europe are expected to return to a more advanced level of buying activity.”

Producers target tranche sales above the USD30.50/kg mark, and should therefore keep prices of both prompt and forward release material above USD30.20/kg

The source conveys apprehension moving forward in the European market until the end of the year.

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