Despite the sharp increase in concentrate supplies from mines in the Western World, the incremental demand for oxide and ferromolybdenum could not be matched yet again in September. Leading producers are understood to have turned down enquiries from traders seeking material for October and from mills attempting to secure Q4 deliveries. The stocks of finished products held by suppliers were quickly depleted in a demonstration that the limited availability of roasting capacity continues to be an issue. With integrated producers in North and South America unable or unwilling to provide tolling services to mining companies that do not have their own roasters, China once again became the only location for the conversion of concentrates - a pattern clearly displayed by a surge in un-roasted material imports. However, viewing it as a waste of scarce energy resources, the Chinese authorities sought to discourage toll roasting by introducing changes to its licensing and tax treatment. Further administrative measures are also likely, as the National Development and Reform Committee indicated that it would define a set of financial and performance criteria which ferroalloy producers must meet. A list of certified enterprises will be published by the end of 2005, and in the mean time financial institutions will not be allowed to provide credit facilities to such companies and electricity supplies will be limited.
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