FeMo prices up; likely to be capped before year-end

Ferro-molybdenum prices in Europe broke through $24 per kg on the top end on Friday October 11, as market participants reported a slight increase in activity.

Ferro-molybdenum prices in Europe broke through $24 per kg on the top end on Friday October 11, as market participants reported a slight increase in activity.

Metal Bulletin’s in-warehouse Rotterdam quotation moved up to $23.80-24.10 per kg on Friday, from $23.50-23.80 per kg previously.

“Prices have firmed a little bit more. This week, we’ve sold [two trucks] altogether. For less than 10 tonnes, we can see $24.50,” a producer told Metal Bulletin.

Prices are not expected to rise much further in the coming months, however, as steel mills begin to destock ahead of the year end and market participants await details of new mine projects, as well as buying in China.

“Nobody knows what’s going to happen with China – whether they’re going to become buyers from the Western world permanently,” a second producer said. “Everybody is asking about new projects such as the Sierra Gorda [copper-molybdenum mine in Chile] as well.”

Prices for the rest of the year are likely to be decided before the end of November, as little or no buying is expected in December.

Oxide prices were also up, climbing to $9.45-9.55 per lb, compared with $9.30-9.45 per lb previously.

LME Week failed to yield much business, according to some market participants, but deals were concluded elsewhere in Europe.

“We’ve had a couple of sales and we’ve also heard about some business in Italy,” a third producer said.

There have also been some enquiries during the week at higher numbers, the first producer added.

“We’ve been looking for some material and I’ve been quite conservative, but we’ve also had unsolicited quotations,” the first producer said.

Claire Hack 
chack@metalbulletin.com
Twitter: @clairehack_mb 

What to read next
Saudi Arabia, through its spearheading of a mining and minerals production and consumption push in the Middle East, a region usually associated with oil and gas, is leading neighboring countries to increase their presence in the base metals markets
Indonesia is preparing to invest more in its aluminium supply chain as part of its wider critical metals strategy, Fastmarkets understands
Market sentiment remain mixed on whether the investigation will impact aluminium prices and production
Aluminium premiums in all key regions remained well-supported in the week to Tuesday June 18, amid ongoing reports of tight availability, while market participants in Europe and Asia are focusing on ongoing negotiations for Japanese third-quarter supplies
The Kingdom of Saudi Arabia’s (KSA) ambitious plan to diversify away from oil and into metals will increase local nickel consumption and fund international mining projects, given recent massive investments in nickel-intense industries
Fastmarkets proposes to amend the name of the MB-AL-0231 Aluminium P1020A all-in price, delivered Midwest US, US cents/lb to clarify that the price is based on the London Metal Exchange cash aluminium price.