The spot trade of some ferroalloys imported into South Korea picked up in March due to increases in Korean steel exports thanks to the weaker Korean currency.
POSCO issued a buy tender for 40 tonnes of ferromolybdenum this week, following another 40 tonne tender last month. One or two steelmakers are expected to call for ferromoly buy tenders later in the month, possibly generating demand for more than 100 tonnes of ferromoly combined.
South Korean ferromoly producers were seeking to import molybdenum oxide feedstock from Japanese and European traders, as the local molybdenum oxide producer Kwangyang Ferroalloys closed its plant for maintenance in January.
Korean buyers are said to be seeking molybdenum oxide at prices that could break even with ferromoly selling at less than USD 20.50 per kilogram, duty and delivery costs unpaid. The pick up in the Korean ferroalloy demand is underscored partly by increased steel exports, fuelled by the weaker Won.
According to the recent Korean customs data, South Korea's exports of hot rolled flat steel products to China more than doubled to 118,746 tonnes in February 2009. This was three times more than the 38,269 tonnes exported in February 2008.
Source: Steel Guru
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