ferromolybdenum and molybdic oxide prices remained under
pressure July 12 as supplies continued to outweigh demand and
no supporting factors emerged to prevent them from falling
publication Metal Bulletins in-warehouse
Rotterdam quotation for ferromolybdenum dropped to $24.30 to
$24.60 per kilogram, while molybdic oxide fell to $9.50 to
$9.60 per pound.
reason for it to stop (falling). Theres a lot of material
around and not too much demand," a producer source said. "We
will see prices go even lower, but hopefully the free fall will
be less aggressive than it has been in the last few weeks."
At the moment, there
is nothing to stop the price of molybdic oxide from plummeting
to as low as $8.50 per pound, while ferromolybdenum could sink
below $24 per kg, he said.
"Japan is the only
country with some potential to increase consumption during the
slow part of the year," the producer source said. "Last year,
the market was more or less in balance, but this year the big
problem is that expectations are much worse."
The market had been
expecting some activity from China, but that has not happened.
"We need the Chinese to step in. The problem is, as prices keep
going further down they keep pushing (down) the level at which
theyd be willing to come in," a trader said. "We have
seen Japanese demand coming back, but that hasnt been
enough. We didnt think (the fall in prices) would be this
A version of this article was first published in AMM sister
publication Metal Bulletin.