Molybdenum oxide prices remained firm Tuesday in a trading week set to be disrupted by holidays in the UK, Japan and later in the week much of mainland Europe and South Korea.
Spot moly oxide powder sales were reported concluded at $6.40/lb in-warehouse Rotterdam and $6.50/lb in-warehouse India, both for prompt release, with oxide briquettes sold at $6.50/lb in-warehouse Rotterdam.
The recent strength in prices continues to be supply- rather than demand-driven, sources said.
"Demand is very stable. The main thing is availability," said one supplier.
While he conceded there was "definitely not a shortage" of molybdenum, he added: "If you look at the numbers, the cutbacks seem to be holding at the moment and we seem to have got to a point where there's less material and a much more balanced market."
Those cutbacks have been mainly on the primary side, one producer noted, adding that the swing of the pendulum further toward byproduct output could be producing more choppy market conditions.
"We've gone from a very stable production to a more variable one," he said, adding that byproduct output "is more cost-effective in terms of pricing but more variable in terms of production levels."
The Platts daily dealer oxide assessment rose to $6.30-$6.50/lb from $6.15-$6.30/lb previously, while the European ferromolybdenum assessment was up to $15.80-$16.10/kg from $15.70-$15.90/kg.
Basis Platts assessments, mean daily dealer oxide is up 17% over the past month and up 25% from its 2016 low of $5.10/lb on February 1.
In recent historical terms, however, prices are still at low levels. The mean average for the five years through the end of 2015 was $10.42/lb.
