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EU Mo metal hits fresh highs on supply constraints

  • : Metals
  • 23/01/11

European prices for molybdenum ingot have climbed to their highest level since Argus launched the assessment in 2019, as firm demand in China compounds existing supply tightness.

Argus' assessment for minimum 99.8pc molybdenum ingot jumped to $75-80/kg in-warehouse Rotterdam yesterday, up from $65-70/kg late last week.

"For moly ingot, the supply of raw materials is too tight; demand in China is very strong, and it was especially firm in December," a Chinese supplier said. "Consumers in Europe need material and [for them] to find these price levels after the Christmas break is a concern."

"One of the biggest producers of moly oxide is not signing long-term for converters with Asia, they want to secure material with Europe and the US, and so they ask for a premium in Asia," the supplier said. "Asian buyers do not want to pay a premium, so they didn't sign. That is why the spot market is so tight."

While there are some stocks of molybdenum oxide and ferro-molybdenum in Europe — as these are more liquid markets that garner more interest from traders — inventories of moly ingot in European warehouses remain critically low. The supply shortage emerged in 2022 with downstream consumers reporting less material available from China.

"There is zero availability on the ground and some people actually flew some material from China," a trader in Europe said.

Some traders tested the water this week and were offered material within a range of $78-80.50/t for February shipment but there was still some resistance to higher offers.

"I am not going to take a position when prices are at an all-time high," the trader said.

Other sources are awaiting material that is on the water and en route already, and they are avoiding taking any risks compounding shipping delays or reneges, they told Argus.

Both traders and end-consumers are also monitoring developments in the molybdenum complex looking for price direction. After severe increases, prices for oxide and FeMo softened yesterday in Europe.

European molybdenum oxide prices dropped to $31-31.60/lb duty unpaid Rotterdam from the 5 January assessment of $32.20-32.40/lb following lower prices in South Korea and lower bids from buyers. However, availability in Europe remains tight despite slower buying interest at higher levels.

Ferro-molybdenum prices fell to $71.15-72/kg duty paid Rotterdam, down from the 5 January assessment of $73-74.50/kg in response to some profit taking from traders.

Meanwhile, Chinese ferro-molybdenum prices are expected to take a pause in the coming week after hitting a 15-year high because of softening buying interest from steel mills and a slowdown in logistics services ahead of the 21-27 January lunar new year holiday.

But market participants noted that strong Chinese demand and a narrow spread between oxide and the alloy in Europe could curb any falls in the near term.

Global molybdenum consumption is expected to continue increasing over the next decade as demand for molybdenum-containing steels grows. But production has been squeezed by lower molybdenum content in mined ores seams and a lack of new molybdenum projects to meet demand.


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24/11/04

US railroad-labor contract talks heat up

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US light vehicle sales hit 6-month high in Oct


24/11/04
24/11/04

US light vehicle sales hit 6-month high in Oct

Houston, 4 November (Argus) — Domestic sales of light vehicles climbed in October, rising to a seasonally adjusted rate of 16mn on the back of greater truck purchases. Sales of light vehicles — trucks and cars — increased from a seasonally adjusted annual rate of 15.8mn in September, the Bureau of Economic Analysis reported today. Last month's rate was the highest since 16.1mn in April and greater than the 15.3mn unit rate in October 2023. US consumers, boosted by solid hiring and salary gains, stepped up purchases as borrowing costs have started to come down in the wake of the Federal Reserve's half point cut in its target rate in September, the first cut since Covid-19 struck in early 2020. With inflation nearing the central bank's 2pc target, the Fed has signaled another 200 basis points of rate cuts are likely into 2026. Sales of light truck sales increased by 1.6pc to just under a 13mn unit rate in October, while sales of cars rose by 2.2pc to a 3.1mn unit rate in the same timeframe. Domestic auto production rose to a seasonally adjusted rate of 123,900 in September from 121,500 in August. That compared with 143,400 in September 2023. Auto assemblies are reported with a one-month lag to sales. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico GDP outlook dims in October survey


24/11/04
24/11/04

Mexico GDP outlook dims in October survey

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Striking Boeing workers to vote on new proposal


24/11/01
24/11/01

Striking Boeing workers to vote on new proposal

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US job growth slumps in October, jobless rate at 4.1pc


24/11/01
24/11/01

US job growth slumps in October, jobless rate at 4.1pc

Houston, 1 November (Argus) — The US added only 12,000 nonfarm jobs in October, reflecting the impacts of two hurricanes, a strike at aircraft manufacturer Boeing and a slowing trend in hiring prompted by high borrowing costs. The unemployment rate remained unchanged at 4.1pc, still close to a five-decade low of 3.4pc reached in early 2023, the Labor Department reported today. Last month's gains were far fewer than the 113,000 forecast by analysts surveyed by Trading Economics. Job gains for the prior two months were revised down by a combined 112,000 jobs, leaving September with a still robust 233,000 and August with 78,000 jobs. A Labor Department report earlier this week showed job openings in September were at their lowest since January 2021. Still, job gains for the 12 months through October averaged 194,000, a little higher than the 12-month period before Covid-19 struck the US beginning in early 2020, causing millions of job losses and a sharp but short recession. Today's employment report, the last before next week's US presidential election, cements odds of a quarter point cut in the Federal Reserve's target rate next week to nearly 100pc from about 96pc Thursday, according to CME's FedWatch tool. The Fed cut its rate by half a point in late September, the first cut since 2020, as it is just beginning to loosen monetary policy after the sharpest tightening in decades to battle surging price gains. Inflation has since moved close to its 2pc target and job gains have gradually slowed, even as the economy remains robust, growing by nearly 3pc in the second and third quarters of the year. Hurricane Helene made landfall in northern Florida in late September and slammed northwards into Georgia, the Carolinas and Virginia, leaving major damage in its wake. Hurricane Milton struck Florida on 9 October, within the period of both surveys used for the job report. About 32,000 unionized workers at Boeing have been on strike since early September. Job growth trended up in government and in health care and social services, which added 40,000 and 51,000, respectively, while manufacturing declined by 46,000, partly due to strikes. Construction added 8,000 jobs. Average hourly earnings edged up to an annual 4pc from 3.9pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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