Molybdenum oxide prices jumped above $12/lb in warehouse Rotterdam Thursday as buyers were forced to accept higher prices in order to secure stock as fewer firm offers were made.
However, lower prices were heard in Asia and Platts daily dealer oxide price widened to $11.75-12.30/lb from $11.65-11.80/lb.
Deals for oxide powder, in warehouse Rotterdam basis, were reported at $12.05/lb, $12.10/lb, $12.25/lb. European consumers were reported to have bought at $12.30/lb, $12.20/lb and $12.40/lb DDP basis.
There were also deals reported in warehouse Busan at $11.60/lb, $11.75/lb and $11.85/lb.
"I rejected an offer at $12/lb Rotterdam Wednesday, and I'm regretting it now," one trader source said. He added that he was not seeing any firm offers in the market over the day.
A European buyer said that he had looked for oxide powder and struggled to find offers, the few he found were as high as $12.40/lb. "I've heard today all four major producers are out of spot material until June, so prices are high and nobody can give a firm offer."
He added that he had also not been able to find offers from China. A Chinese trade source reported to Platts that he was not offering until prices hit $12/lb. He said that he was waiting and watching the market to see if buyers would accept $12/lb.
A European trader who sold oxide powder at $12.10/lb in warehouse Rotterdam early in the day said that offers were getting higher. "Nobody is offering below this level now, prices are easily going up to $12.50/lb," he said.
Market participants were on the whole bullish on prices, citing the lack of offers from trade as the main support factor. However, sources were also nervous on the rate at which prices had increased. A second European trader said: "Prices have up too fast for most people."
A south Korean source said that $12/lb was too high and he would not buy at this level as it was too risky should prices slide. He added that demand was unchanged and he not seeing any tenders or opportunities for back to back business.
The European buyer said: "There's a real tightness from the producers, we can't rule out seeing higher than $13/lb before the end of April."
The first European trader said that he rejected a bid for briquettes at $13.25/lb as too low and would rather wait for higher numbers.
EUROPEAN FERROMOLYBDENUM STRUGGLING TO CATCH OXIDE
While European sources said that oxide was racing ahead, ferromolybdenum was higher but not moving at the same pace.
The first European trader said that he had an offer rejected at $29.85/kg while a producer said that he sold 20 mt at $29.50/kg in warehouse Rotterdam.
A second producer said that he had started the day selling at $29.20/kg and had ended with sales at $29.80/kg in warehouse Rotterdam.
"There's not another ferromolybdenum out there and consumer demand keeps coming," he said.
A consumer in Italy was reported to have paid $29.50/kg DDP for one lot of ferromolybdenum. A European trader said that he had sold $30.20/kg in warehouse Rotterdam.
