The molybdenum market continued to firm Wednesday, with speculation that prices could hit $9/lb by the end of the week, a level not seen since January 2015.
"Some see higher numbers already and the trend as the friend," one European trader said on talk of higher prices in Asia.
Others said they were holding back offers while watching the market. A second European trader said he had offered $8.70/lb in Rotterdam Tuesday and had no interest in selling at the same price today. Others said they were offering $8.85/lb by the end of the European day.
Sources agreed supply was limited. Miners were either not offering in the market or offering limited units.
Despite the end of strike action at Molymet's Molynor facility and Codelco's Molyb, industrial action at Freeport's Cerra Verde mine continued raising more supply concerns.
Oxide powder sales in Asia were heard at $8.60/lb and $8.75/lb in Busan and $8.75/lb CI Japan. $8.60/lb was also reported in the US late Tuesday.
"Talk is that there is not that much material around and it seems to be true. Demand is also supporting prices," the second European trader said.
A ferromolybdenum tender in Europe attracted fewer than expected offers as traders held back material or were not able to find cargo to offer.
Ferromolybdenum sales were reported at $21/kg in Rotterdam, $21.25/kg DDP and $21.35/kg DDP European mill. In Asia, a Chinese trader reported a 40 mt sale of China-produced ferromolybdenum at $20.40/kg and $20.60/kg CIF Asia.
The Platts daily dealer oxide assessment was higher at $8.60-$8.75/lb from $8.40-$8.70/lb. The Platts daily European ferromolybdenum assessment jumped to $20.90-$21.35/kg from $20.40-$20.80/kg.
