Trade in the molybdenum market was largely stagnant Monday, with the S&P Global Platts daily assessments edging lower based on prevailing offer levels, but there were some signs of an uptick in Asian downstream demand, as a few tenders were reported in the market.
Korea Resources is reportedly set to close a tender for 100-150 mt of molybdenum oxide on Wednesday, for delivery 90 days after the tender is issued.
Market sources also reported a Taiwanese inquiry for 20-40 mt of ferromolybdenum and similar volume of molybdenum oxide, with the tender to close on Monday, and the delivery to be prompt, no later than this month.
At the same time, an Indian buyer was said to be looking for 20 mt of ferromoly and 3-5 mt of moly oxide.
Against the background of these inquiries, Asian offerings of China-produced ferromoly were around $16.80-$17.00/kg, with South Korea-produced material at $17.80/kg.
Moly oxide was on offer at $7.25-$7.30/lb CIF Asia, with no deals confirmed, sources said.
The US markets were closed the for the Labor Day holiday, while business in Europe was slow, with one trader noting that there were "no trades from our side seen or to be reported."
A second trader commented that "everyone's wondering why our friends at Hanjin aren't having more of an effect on the market," referring to the announcement last week that South Korea's Hanjin Shipping, the world's seventh-biggest container shipping company, had gone into court receivership Thursday after lenders rejected its restructuring proposal.
The news led to speculation that delayed cargoes of various metals, including ferromolybdenum and other ferroalloys, on Hanjin vessels could have a knock-on effect on prices, but so far there has been little tangible impact.
"It should affect things a lot, but nobody wants to go long because of this story," the trader said.
The Platts daily dealer oxide assessment edged down to $7.25-$7.35/lb from $7.30-$7.40/lb previously, while the daily European ferromolybdenum assessment range was also off 5 cents at $17.95-$18.15/kg.
