October 26, 2015 - Sentiment in the molybdenum oxide market began the week on a firm note Monday, with the prevailing bid-ask range moving higher on the back of trade buying interest.

"We didn't do anything on oxide today. The market is too hot for us," said one European trader. "People are scrambling for material," he said, suggesting some market participants may be looking to cover short positions.

A second European trader agreed. "The market is all over the place. There's definitely more interest in talking about moly," he said. "Maybe there are some shorts for the end of the month."

The second trader reported offer levels overnight in Asia at $4.60-$4.80/lb, but said he had countered by bidding at less than $4.50. "We've got offers of ferromoly at $12.50/kg, so you can't go much higher on oxide than $4.50 if you want to make sense of the market," he said.

Spot market activity was limited in Asia Monday, local sources said, as one producer has suspended spot offers, while only buyers with immediate purchasing requirements were in the market.

One South Korean trader reported an offer from another trader at $4.70/lb CIF Busan for 20 mt of oxide powder. His counterbid was $4.45/lb CIF Busan, and the deal had not closed as of Monday.

In Europe, producer offers were also limited, particularly in terms of oxide powder. "Producers aren't doing anything too dramatic. Trade offers are broadly conservative, around $4.60-$4.70. The question is, are people pulling the trigger at these numbers?" said a third European trader.

The second trader attributed the market's relative buoyancy primarily to the lack of producer offers. "Every time the producers hold back, the price pops up because the trade gets a little bit bullish," he said.

While confirmed oxide sales were thin on the ground, a European consumer was in the market for oxide briquettes and reportedly paid around $4.75/lb on a delivered basis, sources said.

The Platts daily dealer oxide assessment rose to $4.50-$4.70/lb from $4.35-$4.55/lb previously, while the daily European ferromolybdenum assessment was up 10 cents at $12.30-$12.60/kg.

The same European consumer was said to have booked ferromoly at an aggressive price around $12.20/kg, but, elsewhere, producer-trader offers were in the range of $12.50-$12.60/kg, while a consumer sale was booked at $12.65/kg DDP with 30 days' payment terms.

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