FOCUS: Tight container market pushes molybdic oxide arbitrage window wide open

A tight container freight market is making it harder to replenish molybdenum stocks in Europe, resulting in sustained wide premiums compared with prevailing prices in Asia, according to Fastmarkets’ sources

Prices for molybdic oxide have soared in both Asia and Europe over the past six weeks, but prolonged transit times caused by lengthy waits for a shipping slots; longer shipping times due to increased transhipment; and higher freight costs overall, mean oxide prices are maintaining a healthy premium in Europe.
“Busan is well supported with stock but there are fewer shipments from Asia to Europe. There has to be a premium to justify the risk and logistics cost,” a trading source said.
Molybdic oxide was trading in a range $16.50-17.60 per lb in Europe during the first half of this week, according to Fastmarkets’ June 9 price assessment for molybdenum drummed molybdic oxide 57% Mo min, in-whs Rotterdam. By comparison, the price assessment for molybdenum drummed molybdic oxide Mo, in-whs Busan was at $16.50-16.80 per lb on the same date.

Taking the midpoint of Fastmarkets’...

Published

Charlotte Radford

June 11, 2021

10:44 GMT

London