NEW YORK Molybdic oxide
prices have started to dwindle as a recent price rise, spurred
mainly by restocking from traders anticipating strong demand in
the first quarter, has ended and consumption has yet to pick
"The trader interest has run its
course, and now the absence of demand from steel companies eats
away at the price gains," a producer source said.
"The question is whether or not
demand is going to be there to soak up the additional volume
thats out there," a trader agreed.
Prices now stand at $11.70 to
$11.90 per pound, down from $11.80 to $12.10 per pound
While some truckload sales were
reported within this range this past week, most sources said
the market was quiet.
"I didnt have one single
inquiry for that (molybdic oxide) recently," a second trader
Ferromolybdenum prices have also
fallen to $12.80 to $13 per pound from $12.80 to $13.30
previously. Truckload business and smaller volumes traded
around the top end of the range, and offers for truckloads were
reported toward the lower end this past week.
Despite the recent fall, prices
for the material might stabilize again in the near term as many
market players who usually convert molybdic oxide into
ferromolybdenum have held off recently due to the tight price
spread between the two materials, sources said.
Ferromolybdenum "might get a
little bit tighter," the first trader said. "Theres a lot
of people that arent converting."