Ferromolybdenum prices struggled to keep pace with rising molybdenum oxide prices as the market remained cautiously optimistic, sources said Tuesday.
Platts assessed its daily dealer molybdenum oxide price at $11.50-11.70/lb, up from $11.45-11.60/lb.
Market participants continued to attribute tight supply to higher prices.
"Everyone sees producers aren't offering oxide powder, so now trade doesn't want to sell. There's no logic to selling oxide powder, I need it for my conversion too," one European trade source said.
"Oxide powder price is now at a critical point. If it turns down then people will lose a fortune," he added.
A second European trader agreed that there was a sense of nervousness on the pace of upturn in prices. "People are trying to talk it up. If it moves up too quickly it might come back down," the trader said.
With European ferromolybdenum deals in trade said to be at a level of $28.40/kg, the trader added: "With oxide at $11.65, or $11.70 even, the ferromolybdenum differential at almost a dollar on conversion becomes painful ... it should be $29/kg plus."
A producer said that European ferromolybdenum was struggling: "The trade won't pay higher and neither will consumers. Even briquettes are now close to $13 now, following oxide."
Sales reported Tuesday were $11.75/lb in warehouse Rotterdam for oxide powder and $13.25/lb briquettes DDP North Europe prompt each one lot, and 20 mt lots of ferromolybdenum at $28.60/kg in warehouse Rotterdam and $29.30/kg DDP end user Northwest Europe.
On the growing premium on briquettes from oxide powder, a third European trader said: "There is now no briquettes in the market. If you want them you have to buy at what the seller wants."
In Asia, there were fewer market participants over Tuesday as sellers in China and South Korea suspended offers on low stocks, market sources said
One Chinese trader reported holding back offers due to limited warehouse stocks in Asia and Europe. "Not so certain prices will definitely continue to rise, or hit $12/lb, but would like to wait a bit longer," the trader said.
A Japanese trader said that he was seeking to buy 20 mt of ferromolybdenum and had been told by South Korean suppliers that they were not offering, also citing low stocks. Oxide offers were reported at $11.50-11.70/lb CIF Asia, while a bid idea was at $11.52-11.53/lb CIF Japan. Ferromolybdenum offers were wide at $27.80-29.20/kg CIF Japan.
