Market and product
Molybdenum oxide prices move up on supply concerns
Molybdenum oxide prices moved up Monday as buyers accepted higher priceson supply fears despite slow demand, sources said.
Platts assessed its daily molybdenum oxide price 10 cents higher at$11-11.20/lb, up from $11-11.10/lb.
One source said he bought two containers at $11.20 and higher, addingthat offers were at $11.30/lb.
"It's impossible to get anything prompt in spot today below $11.20," hesaid.
The buyer added there was talk that future deliveries may take longerthan expected as a result of the Kennecott Utah mine closure in the US andbacklogs after the end of port strikes in Chile.
He noted that ferromolybdenum was also slightly firmer at $27.20-27.60/kg, up around 20 cents from the previous week.
A producer said that while he was not offering material, he wasreceiving inquiries from traders and consumers, triggered by supply concerns.
"Traders are nervous in general, if they have oxide powder, they don'twant to offer inter-trade in case prices come up quickly," the producer said.
A trader source agreed that prices could move up quickly if a flurry ofinquiries is made while spot supply is tight.
"If the market realizes that we are rather tight for oxide it couldprovoke prices higher," he said.
However, he added, that the market was quiet and there were very fewinquiries being made.
A second trader agreed demand for oxide powder was slow, but said theupside for oxide powder prices was limited because of slow demand.
"If the strikes and accident don't create any impact, then we'll seeprices drift," the trader added.
Platts assessed its daily molybdenum oxide price 10 cents higher at$11-11.20/lb, up from $11-11.10/lb.
One source said he bought two containers at $11.20 and higher, addingthat offers were at $11.30/lb.
"It's impossible to get anything prompt in spot today below $11.20," hesaid.
The buyer added there was talk that future deliveries may take longerthan expected as a result of the Kennecott Utah mine closure in the US andbacklogs after the end of port strikes in Chile.
He noted that ferromolybdenum was also slightly firmer at $27.20-27.60/kg, up around 20 cents from the previous week.
A producer said that while he was not offering material, he wasreceiving inquiries from traders and consumers, triggered by supply concerns.
"Traders are nervous in general, if they have oxide powder, they don'twant to offer inter-trade in case prices come up quickly," the producer said.
A trader source agreed that prices could move up quickly if a flurry ofinquiries is made while spot supply is tight.
"If the market realizes that we are rather tight for oxide it couldprovoke prices higher," he said.
However, he added, that the market was quiet and there were very fewinquiries being made.
A second trader agreed demand for oxide powder was slow, but said theupside for oxide powder prices was limited because of slow demand.
"If the strikes and accident don't create any impact, then we'll seeprices drift," the trader added.
Source:http://www.platts.com/
