A modest upturn in buying interest brought no respite for the molybdenum market Wednesday, with would-be sellers looking to offload units ahead of the summer holiday season pushing prices lower.
"Today we have seen a few inquiries in the European moly market, which have brought no supportive signs and only dragged it further down," said one trader.
Oxide briquettes in drums were reported sold at $6.55-$6.60/lb DDP European consumer for August, with oxide powder booked in the range of $6.50-$6.55/lb.
Referring to the briquette price, one market participant commented that "it's terrible, but that's life," adding that for oxide powder "$6.45-6.50 is the level where you can do business."
Spot oxide powder changed hands in Busan at $6.45/lb Wednesday, sources said.
The Platts daily dealer oxide assessment range moved down to $6.45-$6.55/lb from $6.55-$6.65/lb previously, while the Platts daily European ferromolybdenum assessment fell to $16.50-$16.70/kg from $16.70-$16.90/kg.
With oxide prices having declined steadily from above $8/lb in mid-June, there is some speculation that the market may be nearing a bottom.
"People are still hoping that the descent is close to stopping," said a second European trader.
But the traditionally slow European summer season leaves little scope for increased demand in the near term he said: "People who like to take a position won't take one ahead of the holiday period, and consumers are unlikely to take on additional lots."
One potentially supportive factor, however, is reduced pressure from aggressive Chinese offers, a third European trader argued.
"China has pretty much stabilized compared to where we were a couple of weeks ago," he said. "It seems that it's found a level domestically -- still below where Western material is trading, but not drastically below."
