NEW YORK Ferromolybdenum
prices have dipped again, with producers complaining that
demand from the steel sector has fallen notably from a year
Ferromolybdenum prices eased on the low end of
AMMs range to $12.50 to $13 per pound from
$12.70 to $13 previously while molybdic oxide is in a range of
$11.15 to $11.40 per pound, down from $11.20 to $11.60
Traders reporting that prices
had fallen from last week said the decline was prompted by
One trader, who
reported no new spot transactions, also described demand as
soft. "Its been very discouraging. Its probably a
month since we had a spot sale, but thankfully we dont
live off our spot sales," he said. "The dearth of spot requests
is very different from a year ago. Over the last few years,
steel demand has shown impetus in the first quarter.
Theres a markedly different change."
Indeed, molybdic oxide was
trading in a range of $14.55 to $14.80 per pound March 1, 2012,
while ferromolybdenum was in a range of $16.30 to $16.70 per
Meanwhile, the trader said that
Mexico City-based Grupo Mexico SAB de CVs plans to
increase molybdenum production by 35 percent (
amm.com, Feb. 26) were unlikely to significantly
affect domestic pricing.
"It doesnt mean
therell be more pressure to sell in the U.S., because
most of that material ends up being sold worldwide," he said.
"The cost of freight is so small that its not an issue,
so this market doesnt think regionally."