Chinas exports of ferromolybdenum surged to 439 mt in June, more than three times or 330% from 102 mt in June last year, mainly due to competitive prices, market sources said Monday. 

June exports were a record high since May last year when China removed the 20% export tax on ferromoly. Of the total volume, 190 mt went to Taiwan and 160 mt to South Korea, latest customs data showed. 

"South Korean traders and smelters were reluctant to export ferromoly as the spot market price was not high enough to cover their costs, whereas Chinese sellers were willing due to declining domestic prices," a trader in Liaoning province said. 

Towards the end of June, Chinas export price was more than $1/kg lower than Europes and buyers in Taiwan, South Korea and Japan said this as well as the proximity to China made it an attractive source, he added. 

Over January-June, China exported 651 mt of ferromoly, up 266% year on year. 

China did not import any ferromoly for the second month in June. Total imports in H1 totaled 45 mt, down 72% year on year. 

The country imported 1,874 mt of moly concentrate and oxide in June, soaring 309% year on year. In H1, it imported 10,725 mt of moly concentrate and oxide, up 109% on year, the data showed. 

It exported 994 mt of moly concentrate and oxide last month, up 115.6% year on year, while in H1 exports totaled 2,994 mt, up 23.1% year on year. 

"Some on the export cargoes were produced in China, while some were resale cargoes," a trader in northern China said.

Chinese ferromoly prices were $1.50-2/kg lower than South Korea or Japan around mid-July, meaning that exports could be even higher in July, a Japanese trader said.