EUROPE MINOR METALS-Aerospace metals in focus, summer slowdown

* Farnborough air show supports some aerospace metals

* Supply shortage may send indium above $600 -traders

* LME satisfied with minor metal contract volumes

(Refiles to remove extraneous word in first paragraph)

By Michael Taylor

LONDON, July 29 (Reuters) - Many minor metals eased over the
last week with volumes hit by the summer lull, although many
metals used in the aerospace industry bucked the overall trend
on improving demand expectations.

Among such gainers, titanium sponge 99.6 TIT-SPONGE-LON
traded at $7.63 a kg versus four-month lows at $7.50 a kg the
week before. The metal, used largely in the aerospace industry,
touched an all-time high above $31 a kg in mid-2005.

"As a follow up of the Farnborough Airshow it looks like
consumption of sponge will increase next year but sponge
production potential is in oversupply," said one trader.

Last week, Europe's Airbus (EAD.PA: Quote) pronounced the recession
over after wrapping up a busier-than-expected Farnborough
Airshow with a $3 billion-plus order for dozens of jets from
Virgin boss Richard Branson. [ID:nLDE66L1SD]

"For 2011, Russian and Japanese sponge producers have
already advised that they would increase sponge production,"
said the trader. "As a consequence the price of sponge is not
likely to increase next year."

Among other metals, indium, a key ingredient in liquid
crystal display screens for televisions, firmed and traders now
see prices rising even further in the coming weeks.

"I've been hearing prices might touch $600 soon," said one
trader. "Its mainly because of China -- there is a shortage, and
some plant closures.

"There is material in Hong Kong and Europe but people are
just holding it at the moment."

Traders said indium IND-ING-LON was trading at about $560
a kg this week compared with around $555 a kg last week. Prices
of the metal have fallen from two-year highs at $602.50 a kg hit
in late-May.

China is the world's largest producer of indium, a small but
vital component for flat-panel screens in television and
computer monitors.

SUMMER HOLIDAYS

Overall, minor metals demand has slowed in Europe, as many
factories and consumers close for the summer holiday season,
with business due to pick up around late August.

Prices of selenium SELE-LON, used to produce electrolytic
manganese, traded at about $38.13 a lb from two-and-a-half-year
highs at $38.38 a lb the previous week.

"Various inquiries from China have been coming in after a
certain time of silence on their side," said one trader. "But
consumer business has been little bit more quiet due to vacation
time."

Ferrochrome FECRO-HC-RU, used in stainless steel to
prevent corrosion, traded unchanged at about $1.15 a lb. Prices
have fallen back from two-and-half-year peaks at $1.34 a lb
touched in early April.

"Spot prices are largely unchanged (and the) consensus is
that prices are now at (or) close to a bottom," said one trader.

"Indian export offers jumped on Chinese traders calling the
bottom of the market but (we're) yet to see a pick up in
underlying demand," the trader added.

Three-month cobalt CBD3=LX, used as a battery material,
was quoted at $37,500/$42,000 a tonne versus a last trade at
$38,000 a tonne on July 22.

Three-month molybdenum MOD3=LX futures, used to make
steel, was quoted at $32,400/$33,900 a tonne, from a last trade
at $33,000 on July 28.

Trading volumes in the London Metal Exchange cobalt
contracts totalled 2,782 lots or 2,782 tonnes, with a notional
value of $112.8 million in the first half of 2010, the exchange
said on Tuesday. [ID:nLDE66Q16K] [ID:nLDE66Q25Q]

The exchange's molybdenum contract saw 227 lots traded or
1,362 tonnes, with a notional value of $50 million.

"The minor metals contracts have traded more than
satisfactorily," LME Chief Executive Martin Abbott told a news
conference in London.

"We've seen the cobalt contract performing very well,
trading tonnages which are putting it close to parity with the
underlying market," he added.

For latest minor metals prices click on [MINMTL]

(Reporting by Michael Taylor; editing by Alison Birrane)