NEW YORK Domestic
molybdic oxide prices have risen as supply becomes increasingly
tight and some traders stock up ahead of an expected demand
pick-up in the first quarter.
"From the trade side, there seem
to be some people taking positions. We havent really seen
an uptick from the consumers," one producer source said.
Prices are now between $11.80
and $12.10 per pound, up from $11.10 to $11.50 previously, with
inter-trade business of truckload quantities reported at the
low end of the range and a consumer reportedly buying similar
volumes at the upper end in the past week.
But while traders did report
looking for additional material, some said they had been
unsuccessful recently as some producers have been unwilling to
sell. "My suppliers are not offering to the market," one trader
The producer source confirmed
that he had little molybdic oxide to sell at the moment,
contributing to an apparent market tightness.
Ferromolybdenum prices also
moved up in the past week to between $12.80 and $13.30 per
pound from $12.35 to $12.65 previously, with a sale of a
truckload quantity reported at $12.80 per pound and a number of
smaller deals as high as $13.30 per pound.
Sources said that even with the
uptick in ferromolybdenum prices, the spread between molybdic
oxide and ferromolybdenum had narrowed considerably, suggesting
that either oxide would move down or ferromolybdenum up in the
near future as the market regains balance.
"The spread is unusually tight
right now," the producer source said.