The steady increase in molybdenum oxide prices in recent days accelerated Wednesday, fueled primarily by trade buying, though some market sources remained at a loss to explain the sudden move higher in the midst of what is usually the summer lull.
The Platts daily dealer oxide assessment rose to $6.60-$6.80/lb from $6.50-$6.60/lb previously, while the Platts daily European ferromolybdenum assessment was up to $16.55-$16.75/kg from $16.50-$16.60/kg.
Truckload sales of ferromolybdenum in Europe were reported at $16.60-$16.65/kg delivered end-user Tuesday, and at $16.75/kg in-warehouse Wednesday, with smaller 5-10 mt lots booked at $16.85-$16.90/kg, sources said.
"I have no clue what's behind it, there's no fresh news. Is it just a flash in the pan?" said one European trader.
Prices pushed higher over the course of the day. Oxide powder purchases were still achievable at around $6.60/lb and just below basis Busan in early Asian trade, but by the US morning prompt business in North America was being concluded in the range of $6.75-$6.85/lb.
A second European trader said the initial rally began last week when prices finally found some support and market participants identified a buying opportunity, adding that there had been a speculative element to some of the buying interest.
"Some people started sticking their neck out," while others have pulled back from offering, he said.
