Molybdenum Market Update (March 28, 2013)

Molybdenum prices have moved lower, with ferromolybdenum, which is mainly used in steelmaking, now trading between $12.35 and $12.70 a pound in the US, down from $12.65 to $13 a month ago, according to data from Metal-Pages.

Molybdenum oxide (from which ferromolybdenum is made) has slipped to $10.88 a pound, compared to $11.40 on February 27, according to Bloomberg data.

Metal-Pages also reported that US steel production for the week ended March 16 stood at 1.79 million net short tons, down 2.4 percent from the prior week. Year-to-date, the country has produced 19.96 million net short tons of steel, 7.6 percent less than at this point in 2012.

China, too, has seen waning demand from steelmakers, which has lowered prices for ferro-molybdenum in the country from 117,000 to 121,000 renminbi (US$18,828 to $19,472) a month ago to 103,000 to 107,000 renminbi ($16,575 to $17,219) currently. “Prices have slumped since the New Year holiday, owing to a lack of consumer buying,” a Henan-based producer told Metal-Pages.

In Europe, by contrast, ferromolybdenum prices moved up by $0.25 this week, to $26.80 to $27 per kilogram. “There’s a little more interest,” said one source in the molybdenum business, according to Metal-Pages.