Environmental crackdown focusing on Lengshuijiang antimony smelters

BEIJING (Asian Metal) 4 Nov 08 - According to market sources, relevant bureaus in Lengshuijiang, Hunan province, one of the most important antimony production bases started a large-scale crackdown on antimony smelters in the area. The checkup, which is expected to last about one week, aims to shut down smelters with the capacity lower than 5,000tpy or not complied with environmental standard among eighty to ninety smelters in the region.

An official from Hsikwangshan Twinkling Star Co., Ltd., the largest antimony trioxide producer in the world welcomed the check up. According to the source, only those smelters who meet the industrial access requirements are qualified to continue producing. The source believes that the check up will help rectify the market order, combat illegal smelting, and protect the profit of state-owned enterprises. Additionally, under the sluggish market, the checkup is likely to stimulate demand and stop the price from falling further.

An antimony ingot smelter based in Anhua, Hunan province learnt the environmental crackdown on antimony smelters in Lengshuijiang. The source also takes it to be a favorable factor for the antimony market which is very slow now. According to the source, the smelter is running regularly with an output of around 300tpm. However, it does not quote for the time being for lack of orders. The source revealed that offers in the spot market have been in decline with some smelters offering a price below RMB38,000/t (USD5,564/t) ex works. Furthermore, quotations made by a few small smelters are lower than RMB33,000/t (USD4,832/t) VAT excluded.

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Manganese flakes exportation in stagnation

Manganese flakes market remains dull while the whole economy is in recession. Sources reported that though most suppliers insist on offers of around USD2,200-2,300/t FOB, still few deals are concluded.
A Hunan-based exporter told Asian Metal that they failed to receive any inquiry in the last two weeks while most foreign buyers are just watching and waiting for the price to drop to the bottom line. "Who knows what the bottom line is," said the source reported that the prices the foreign buyers claimed at around USD2,300/t in warehouse Rotterdam is unprofitable for most Chinese suppliers. "We still insist on USD2,300/t FOB. If you are not satisfied, no deal can be concluded."
The source said that most smelters at the moment have already been out of production while those still in operation also bear great pressure of losses if they cannot get a good price. "The Customs would also be a hindrance if the price is too low. You will have to pay higher taxes according to the price floor," said the source who decides to expand some domestic business for the moment while the export market is so dull and volatile.
A trader from East Asia is reported to have cut down their purchasing volume in the coming months. "It's normal for us to reduce the quantity as the stainless steel market is also very low with most mills cutting production," said the source who still hold a very low expectation towards the future market. As the source sees it, most major smelters in China are still in operation though under capacity. "So manganese supply is still sufficient and the price still faces great pressure of dropping from current USD2,200-2,300/t FOB."
The source believes most consumers are already covered with enough materials needed in the rest of the year and few deals would be concluded. "The Chinese domestic market seems to be in better condition and so more suppliers would consider selling in domestic market instead of the export market." As a result, manganese export price might stay at the current price in the near term.

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Korean buyers watch magnesium ingot market

Magnesium ingot buyers from South Korea are still away from the market and waiting for lower prices. Sources reported to Asian Metal that few deals are being done in the market, though offers from China have been in decline.
A consumer from South Korea reported that they have not purchased any magnesium ingot since the previous purchase of two containers was closed at USD3,900/t CIF Pusan early October. "We plan to make another purchase before long, but we dare not move as the price is still moving down very fast," said the source.
According to the source, the magnesium price decreased by USD800-900/t within one month to current USD3,000-3,100/t CIF Pusan, scaring many consumers away. If not for urgent need, consumers would not enter the market. Consuming two or three containers of magnesium ingot every month, the source mainly purchases the material from local trading companies.
A trader from South Korea reported that the magnesium market has been on the ebb with offering prices from China decreasing to USD2,950-3,100/t CIF Pusan from USD3,000-3,200/t CIF Pusan a week ago. Facing the fluctuating prices, the source is also very cautious about placing orders.
According to the source, some end users may throw out orders soon for next quarter. "However, we dare not say whether it is the right time to buy in now," said the source, adding that they would like to watch for another couple of days before concluding deals.
The source used to import more than 500t of magnesium ingot from China every month but has not bought any of the material since mid-October for lack of orders.

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European ferro molybdenum market crashing to below USD30/kg

From of as high as USD79.00/kg Mo d.p. nearly two months ago, ferromolybdenum prices crashed at close of business last Friday to just below USD30.00/kg Mo d.p., a sharp drop of more 60% and a drop by 23% from USD38.00-39.00/kg Mo last week Thursday and now hanging at USD29.50/kg Mo d.p..
A European dealer source reportedly sold 5t at USD39.00/kg Mo d.p. in warehouse Rotterdam last Thursday but got shocked to loose another deal offering material at USD38.00/kg Mo only to learn another European dealer had accepted bids at USD29.80/kg Mo d.p. in warehouse Rotterdam for prompt delivery.
"I don't know what is happening," said the source unable to comprehend the how bad he had overestimated the market. "Everything is in confusion at the moment." The source also received an offer of a Chinese-origin material at USD28.00/kg Mo d.u. and declined making a bid although the payment term included extended payment terms; something rarely known with Chinese suppliers.
Another European dealer lamented the loss he had suffered as a result of the market crash; he had had to accept bids at USD35.00/kg Mo d.p. last Wednesday for a 10t-deal although it was barely enough to cover the cost. Nevertheless, he took solace in minimizing regrets by liquidating material and remarked, "I am done for noble alloys market until conditions permit otherwise."
And in the same vein, molyoxide prices have dropped from USD20.00/lb at beginning of last week and now at below USD13.50/lb in warehouse Rotterdam for prompt delivery. However, a European converter who received an offer but declined it argued, it would be very difficult for suppliers and producers to convince other converters and steel plants to take in material at this time. This is because there is the general feelings producers could still lower the price to as low as USD7.00-8.00/lb and still make some reasonable margins.

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Chinese molybdenum market summary Oct 27-31

With demand remaining weak in Chinese ferromolybdenum market, offers for ferromolybdenum slip further to RMB150,000-155,000/t (USD36.66-37.88/kg) from RMB170,000-175,000/t (USD41.54-42.77/kg) early this week, while offers for molybdenum concentrate slide to around RMB2,000/mtu (USD13.31/lb). No significant tender has been reported to Asian Metal in the week, and more people start to believe that the price would decrease further in the coming weeks.
Meanwhile, the molybdenum price in warehouse Rotterdam drops dramatically from USD50/kg to USD36/kg in the week; Chinese suppliers generally stop selling materials in spot market. According to participants, few buyers are interested in purchasing anything. As molybdenum oxide price decreases to USD16/lb at the weekend, everyone is watching what would happen in the following week.
Molybdate market keeps declining with few deals concluded in the market. Prices for grade-one ammonium tetramolybdate decreased to around RMB150,000/t (USD22.00/kg) from RMB170,000/t (USD24.93/kg) early this week, and participants still expect it to move down further in the following week. However, sodium molybdate market appears relatively stable, and the price of sodium molybdate 99% stabilizes at RMB140,000-150,000/t (USD20.53-22.00/kg). There are multikilogram deals of ammonium tetramolybdate and sodium molybdate concluded at USD36/kg and USD28/kg respectively this week, and the demand remains low.
Molybdenum products market remains chaotic and downward. Molybdenum powder price decreased further to RMB320-330/kg (USD46.92-48.39), and low offers, such as RMB300/kg also appear in the market. Offers for molybdenum bar, rod and stick are wide-ranged, and suppliers can only watch the price fall.

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Antimony ingot market runs slowly in Russia

Sources in Russia revealed that the antimony ingot market has been sluggish recently due to continuously low demand. The price of antimony ingot 99.65%min keeps stable at around RUB190-195/kg (USD7,037-7,222/t) d.d.p. in the spot market, and participants believe that the market may not rebound in the near future.
A trader in Russia, who has a monthly trading volume of around 20t of antimony ingot, said, "We did not conclude any deals in the last two weeks, and received fewer inquiries." The source remains consuming the inventories purchased some material at the end of September.
The source revealed that the devaluation of ruble and the low demand in the market result in few spot deals as some consumers have already reduced the purchasing quantities. "I think the price of antimony ingot 99.65%min keeps stable at around RUB190/kg (USD7,037/t) d.d.p. in the spot market, the same as that of last weekend," said the source.
The source is pessimistic about the antimony ingot market in the following two weeks. "The price of antimony ingot 99.65%min may fall below RUB180/kg (USD6,666/t) d.d.p. in the spot market due to the continuously low demand," said the source.
Another trader in Russia revealed that the offers of antimony metal have been wide-ranged recently as some traders holding stocks have lowered their offers to promote sales for fear of the price falling. "I think the price of antimony ingot 99.65%min keeps stable at around RUB190-195/kg (USD7,037-7,222/t), but few deals are concluded," said the source.
The source disclosed that many end-users have reduced the purchase quantities of antimony ingot due to continuously low demand, and the market may not rebound in the near future.

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European ferromolybdenum market drops again to below USD40/kg

As trading session for the first month of the last quarter ends today, ferromolybdenum market drops again to below USD40.00/kg Mo d.p., with many dealers claiming to have voluntarily stopped business for positioning and only active on a back-to-back basis.
A European trader source sold 5t of Chinese-origin ferromolybdenum at USD36.30/kg Mo d.u. in warehouse Rotterdam and disclosed to Asian Metal he was not going to buy material anymore, not only for lack of enquiries but also the high risk and uncertainty pervading the market.
"I cannot buy more material now because it might be difficult to get consumer orders at reasonable margin in a daily weakening market," explained the source that buttressed his argument of receiving many unsolicited offers from Chinese suppliers. "I guess some suppliers also have liquidity problems."
Another European dealer source sold 10t of FeMo 65%min grade material at USD37.30/kg Mo d.d.p. (delivered duty paid) and confirmed the market as stable though with a little correction downwards over the past week. "I do expect current price range of USD35.00-37.00/kg Mo d.p. to hold, provided major producers would continue to not offer material for spot delivery in the price range," said the source.
Currently quoting material at USD18.00/lb, a European molyoxide dealer lamented it had become difficult for him to ink any deal at above USD16.50/lb for immediate release because Chinese suppliers have been offering material at as low as USD15.40/lb. The source added that enquiries from European converters have dropped sharply in the last two months and could continue till next year because any buying activity right now is limited to a period of six weeks for the rest of the year.

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