Metal Bulletin’s quotation now stands at $28.40-28.90 per kg in-warehouse Rotterdam, up from $27.50-28.20 per kg, and at least some sources have said they are already hearing suggestions of $29 and above.
“Right now, I wouldn’t go below $29. We’ve seen $12 [delivered] for oxide, and that’s $29.70 for ferro-molybdenum,” a distributor said.
Demand has continued to rise and it is understood that steel mills could be looking for up to ten truckloads of material in the coming days.
“I would start calling $30… It could very well be that we will see six to ten trucks, or even more. Demand is incredible,” a producer said.
“Some steel plants [are buying large amounts] – it looks like the market is booming,” he added.
This rise has been supported by a refusal among traders to accept lower numbers to offset losses made when prices dropped at the end of 2013, the producer added.
It has not, however, been bolstered by the earthquake in Chile, as no mines were damaged and very little disruption was caused to port activity, meaning the upward trend is almost purely based on demand.
It is understood, furthermore, that at least one major supplier of oxide is out of the spot market until June.
Other suppliers are now holding back as they wait to see if prices will rise any further, exacerbating the lack of availability of spot material caused by a dearth of molybdic oxide.
Metal Bulletin’s oxide quotation also rose, climbing 30 cents at both ends to $11.50-11.80 per lb, in-warehouse Rotterdam.
“A few people think we will have $12 for powder [soon]. There aren’t many sellers on the market, so you can’t replace material,” a second producer said.