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).
ferromolybdenum spot prices have increased slightly to a range
of $11 to $11.25 per pound from $10.90 to $11.15
"We saw a lot of
activity (in the past) week," the first producer source
still lagging a bit compared with Europe," the second producer