FeMo prices could hit $30 per kg in Europe – sources

Ferro-molybdenum prices continued to soar on Wednesday April 9, as market participants predicted levels of $30 per kg and beyond.

Ferro-molybdenum prices continued to soar on Wednesday April 9, as market participants predicted levels of $30 per kg and beyond.

Metal Bulletin’s quotation now stands at $28.40-28.90 per kg in-warehouse Rotterdam, up from $27.50-28.20 per kg, and at least some sources have said they are already hearing suggestions of $29 and above.

“Right now, I wouldn’t go below $29. We’ve seen $12 [delivered] for oxide, and that’s $29.70 for ferro-molybdenum,” a distributor said.

Demand has continued to rise and it is understood that steel mills could be looking for up to ten truckloads of material in the coming days.

“I would start calling $30… It could very well be that we will see six to ten trucks, or even more. Demand is incredible,” a producer said.

“Some steel plants [are buying large amounts] – it looks like the market is booming,” he added.

This rise has been supported by a refusal among traders to accept lower numbers to offset losses made when prices dropped at the end of 2013, the producer added.

It has not, however, been bolstered by the earthquake in Chile, as no mines were damaged and very little disruption was caused to port activity, meaning the upward trend is almost purely based on demand.

It is understood, furthermore, that at least one major supplier of oxide is out of the spot market until June.

Other suppliers are now holding back as they wait to see if prices will rise any further, exacerbating the lack of availability of spot material caused by a dearth of molybdic oxide.

Metal Bulletin’s oxide quotation also rose, climbing 30 cents at both ends to $11.50-11.80 per lb, in-warehouse Rotterdam.

“A few people think we will have $12 for powder [soon]. There aren’t many sellers on the market, so you can’t replace material,” a second producer said.

Claire Hack
Twitter: @clairehack

What to read next
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.