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| FeTi to wait for the market for higher prices |
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| Code:MFN002826 Prpduct:Ferro Titanium Date: 2010-07-29 |
The anticipated price rise in ferro-titanium as a result of falling scrap supply began on Wednesday, though the market has only moved slightly as the European summer holiday period – and accompanying shutdowns at both producers and consumers – limited the rally.
“Prices would be zooming up if there weren’t so many shutdowns,” a producer said. “If, say, ArcelorMittal came in for six boxes it would really push on as there is not much volume around.”
Ferro-titanium basis 70% rose to $6-6.50 per kg from $5.90-6.40 previously, after the producer booked two truckloads at the top of the new range.
Ferro-titanium producers have been reluctant to do business in recent weeks as the price has not offered a significant margin over the price of their raw material supply.
“It’s been very quiet from the producers and there isn’t much going on,” a trader said.
Titanium scrap turnings remained stable at $1.65-2.00 per lb cif, but all deals reported to MB came near the top of the range in deals from US suppliers, as scrap supply in Europe has become extremely scarce.
“I bought ten containers of scrap from the US at $1.90 [per lb],” a second ferro-ti producer said. “I’m just trying to get material on the water for September.”
With tight supply, scrap turnings are expected to keep rising in the coming months, and producers are looking to gather as much material as possible in advance of higher prices.
“Whatever I pay today is better than what it will cost me soon, so I’m on a buying spree,” the second producer added.
At current scrap prices, producers are not offering any material below the top of the new range, and are happy to wait for higher prices to emerge before selling.
Though few deals were reported in the first half of the week, demand is reasonable for the time of year and producers were able to report enquiries from India, Poland, Turkey and France, among others.
But they are in no hurry to take prices even in excess of $6.50, as the consensus in the market is for prices to rise swiftly in the next few weeks.
The first producer, who booked two truckloads at the top of the new range, told MB he could have booked more, but does not feel the need to take more business at these levels.
“I’m not that bothered – I don’t have much available and I don’t want to sell all my stock,” he said. “I think prices will be at $7 soon, if not next week then the week after.”
The second producer told MB he was well sold through contract business until the second half of September, and has now shut down his operations for seasonal maintenance work.
“We’re on the shutdown so we’re only producing a little,” he said. “I will probably hold on to most of my stocks and I’m not giving any price indications.”
With business subdued by such shutdowns prices may only move slowly in the coming weeks, but with climbing scrap prices among low availability, they are not likely to fall. With this assurance, producers are happy to wait for higher prices when demand improves after the summer holiday period. |
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| 08 Sep 2010 | | | Cash Ask | 3M Ask |
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| Copper | 7620.00 | 7635.00 |
| Aluminium | 2120.50 | 2150.00 |
| Zinc | 2170.00 | 2197.00 |
| Lead | 2151.00 | 2179.00 |
| Nickel | 22450.00 | 22400.00 |
| Tin | 20980.00 | 21075.00 |
| Al.Alloy | 2230.00 | 2130.00 |
| NASAAC | 2081.00 | 2110.00 |
| Steel Billet | 506.00 | 527.00 |
| Cobalt | 41000.00 | 40700.00 |
| Molybdenum | 35300.00 | 36000.00 |
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2010-09-09 |
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| PRODUCT |
BID
(US$/TON) |
ASK
(US$/TON) |
2B Coil-OCT |
3,300 |
3,380 |
No.1 Coil-OCT |
3,120 |
3,200 |
2B Coil-DEC |
3,300 |
3,380 |
No.1 Coil-DEC |
3,120 |
3,200 |
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MetalFirst China Average:
US$16.025/lb
As of Sept. 3, 2010
(updated weekly)
MetalFirst Average:
US$16.00/lb
As of Sept. 3, 2010
(updated twice weekly)
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