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 up.
"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 previously.
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 said.
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."