Reported sales for molybdenum oxide increased to the highest level in weeks on Thursday, while prices came close to a five-year low.
The Platts daily dealer molybdenum oxide assessment fell to $9-9.15/lb from $9.20-9.35/lb while the European daily MW ferromolybdenum assessment fell sharply to $23-23.50/kg from $23.50-24/kg.
With a daily average of $9.075/lb, this is only 2.5 cents away from the low of a weekly mean of $9.05/lb assessed on February 5, 2009.
Oxide powder sales of 20 mt lots at $9.05/lb and 9.15/lb were reported in Busan; and $9.10/lb and $9.15/lb in Rotterdam. Briquettes sales to a consumer were reported at $9.15/lb for two truckloads and one truck at $9.10/lb DDP NW Europe.
"Today we have the selling pressure from producers. They want to get rid of material," one European trader said, adding that while volumes were moved by traders, "no money is being made."
On producers sales activity, he noted by-product miners were keen to fulfill sales quotas rather than look at maximizing profit. European sources agreed, reporting offers at $9.10/lb and $9.15/lb from producers at the start of the day, "they don't want to pass on offers or sales."
A second European trader said: "Most traders believed October would be a low-price month, but this is crazy, ... it's gone down faster than it went up."
With no immediate demand from Chinese market participants after they returned from a week-long holiday on Wednesday, European sources questioned what price level would trigger interest.
"The Chinese are getting nervous. I heard local producers are reducing prices," a third European trader said. A Western producer said that while Chinese producers could lower prices, high production costs limited their competitiveness. He noted there was interest from Asian buyers in the morning.
A Chinese trade source : "There's no chance for possible imports yet, but people are looking out for the possibility though." He added he was being told there was no shortage of oxide powder in the market indicating prices may not see resistance at $9/lb.
Meanwhile, European ferromolybdenum also felt the pressure of aggressive offers with a sale to a consumer at $23/kg DDP. Other sales were reported at $23.10/kg and $23.20/kg in Rotterdam, with offers as high as $23.70/kg.
"I don't know why it's falling. It's crazy, there is still demand," the third European trader said.
