NEW YORK Molybdic oxide prices have dropped further, with traders now predicting that transactions will soon fall below the $9-per-pound mark.
Molybdic oxide widened to a range of $9.20 to $9.80 per pound from $9.60 to $9.80 previously, its lowest range in over four years. Market participants said that traders and producers are continuing to chase sales.
Itll be below $9 per pound soon. The market is going straight down, one trader said.
A second trader said: Oxide looks like its going to breach $9 per pound very soon. Theres just oversupply. Im getting offers from (one producer) saying whatever we can get, well take. So, $8.50, here we come.
Molybdenum has not traded below $9 per pound since May 2009, when the item was priced in a range of $8.30 to $8.80 per pound.
Moly is a dog, chrome is a dog, everything is in the doldrums, a third trader said. We see the steel capacity utilization creeping up slowly, and its now at around 78 percent. But even at that level it is not inducing anyone to come into the spot market. We are hoping more business will materialize in the last month of the quarter.