NEW YORK Molybdic oxide prices are moving up on reports of increased consumption and tight supply, confounding market expectations that the material could fall below $9 per pound for the first time in more than four years.
Molybdic oxide is at $9.50 to $9.70 per pound, up from $9.20 to $9.40 previously and a mid-August low of $9.10 to $9.30 per pound (amm.com, Aug. 16), the lowest range since May 2009.
"Oxide keeps going up," one trader said. "You cant get material anywhere. Producers are holding supply somewhat, and thats pushing prices up.
The U.S. market was buoyed by higher demand and prices in Europe early this past week, while domestic contract business also experienced strong demand, a producer source said.
"We have had huge demand from sectors that serve the automotive industry. ... A lot of the price movement is largely seasonal, with traders going long, but theres definitely been increased consumption buying, too," he said.
Ferromolybdenum held at $11.20 to $11.50 per pound.