NEW YORK Molybdenum producers have booked 2014 contracts with formula discounts comparable to 2013 contracts, with an expected supply improvement next year impacting quoting levels.
One producer source said his company had secured 10 to 15 percent more contract businessbased on volumefor 2014 in the U.S. market. "With pricing, the terms were no worse. We had very limited improvement in pricing terms," he said. "But we were more interested in securing the volumes than improved terms."
A second producer source said that an expected oversupply in 2014 had impacted his ability to secure reduced formula discounts. "Some consumers in the industry have had much higher expectations of discounts than we were willing to offer," he said. "We heard numbers as high as a 2.5-percent discount, but thats not in the realm of being close."
The sideways trend is in line with prior expectations from domestic producers (amm.com, Dec. 3).
Meanwhile, ferromolybdenum spot prices have increased slightly to a range of $11 to $11.25 per pound from $10.90 to $11.15 previously.
"We saw a lot of activity (in the past) week," the first producer source said.
"(Ferromolybdenum) is still lagging a bit compared with Europe," the second producer source said.