The tariff adjustments will continue to affect the ferro molybdenum market

China's Ministry of Finance issued a revised some of the import and export of goods tariff document, the document states, by the State Council Tariff Commission, the ninth plenary session for deliberation and approval, and approval by the State Council. Since June 1, 2007, China will adjust the import and export of goods tariff. In the document relates to the molybdenum tax adjustments : molybdenum oxide, ammonium molybdate, Molybdate the introduction of products such as 5-15% of export tariffs, molybdenum export tariffs from the current 10% to 15%. This means that the molybdenum chemical products from June 1, will be before the export tax rebates to export, Molybdenum iron export tariffs will increase by five percentage points. Molybdenum products export tax adjustments directly show the molybdenum products exports increased costs. Related varieties export tax adjustment details will be announced later.
At present, the molybdenum market has been in a state of increased domestic ferro molybdenum prices have reached 320,000 yuan metric ton price MOLYBDENITE also sell 4,600 yuan a metric ton degrees. Market sources in particular molybdenum supply is still relatively tight supply, and market prices remained firm. Yesterday, the news of tariff adjustments issued a market atmosphere became tense. many manufacturers have adopted a wait-and-see attitude to deal with changes in the market, but today the prices of the domestic market was stable.
By analysis of the current market situation, June 1, domestic molybdenum market volatility should not occur, domestic prices should be stable. Export market may be June 1 more fiery, many export companies will rush in on June 1 dedicated cargo out, prices may increase in tariff adjustments, At present, domestic export prices of manufacturers reported 77 U.S. dollars / kg (FOB). and no longer willing to sell below this price.
In June 1, the domestic market will Depreciation possible, but there will be a buffer period, Initial estimates Depreciation time, probably from June 6-10 days around. While domestic prices are expected to be Depreciation, but this process is slow and gradual decline, the market is impossible turbulent. Depreciation reasons : first, because the export tariff adjustment, exports increased costs, some manufacturers to sell their exports. increase domestic sales pressure. Second, the domestic steel procurement gradually coming to an end, the slowdown in domestic demand, Third, the existing supply of molybdenum tense situation will be eased to some extent, ore prices will have fallen.
June molybdenum price forecast : from the early part of June, China's molybdenum price will be slow decline, but the rate will not be very big. June, ferro molybdenum fall in the current level of not more than 30,000 yuan metric ton. and molybdenum will decrease to 4,000 yuan per metric ton below, the price may be the 4200 yuan per metric ton was running around.
However, as the market from the beginning of May has been not very stable, and any sign of trouble appeared to unexpected market changes.