Reuters reports that prices of ferro tungsten in Europe crept up for the second week running as lack of new supplies from China reinforced a dearth of material in Rotterdam, traders said.
The price quoted was higher at around $30 a kg from $29 a kg last week and $25 a kg two weeks ago before as consumer enquiries for the metal used to make steel for industrial drills were met with empty hands.
"Chinese producers are closed and they will stay closed until after the holiday next week," a London-based trader said. "Most of the material in Rotterdam has been soaked up, consumers are tentatively asking for prices."
Chinese cutbacks and plant closures, expected to continue until after the Lunar New Year holiday next week. also helped support prices of magnesium in Europe.
Magnesium was quoted at around $3,000 a tonne from $2,900 a tonne, but traders said prospects were poor given the dire state of the auto industry.
Overall, traders said there was very little business being done, that they did not expect to see a real recovery until the second half of the year and that the global economic downturn would dampen activity for some months yet.
"People are living hand to mouth, they are only buying when they have to," a UK-based trader said. But he added that he thought China's steel industry was already starting to ramp up production in anticipation of infrastructure spending.
"It's easier to get things moving in China, they have a holiday so things are slow, but their inventory has disappeared and they are worried about all the cutbacks around the world ... They need more than they've got."
Ferro chrome though was struggling, slipping five U.S. cents to 70 cents a pound as producers and consumers negotiated benchmark contract settlement prices.
"The thing is people don't want to settle at these lower prices because they are sitting on stock used as collateral with banks," a Europe-based trader said.
"If the benchmark falls, banks will be knocking at doors asking for more collateral ... That's why the process could take longer this year."
Early indications for charge chrome were for a number between 85 and 95 U.S. cents a pound.
High grade cobalt used to make aerospace engines was bumping along the bottom at around $17 a pound.
London-listed miner BHP Billiton is currently not offering any cobalt which makes the
market more difficult to gauge.
Source: Reuters
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