LONDON European 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 further.
AMM sister 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.
"Theres no 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 dramatic."
A version of this article was first published in AMM sister publication Metal Bulletin.