<article><p class="lead">European prices for molybdenum ingot have climbed to their highest level since <i>Argus</i> launched the assessment in 2019, as firm demand in China compounds existing supply tightness.</p><p><i>Argus</i>' assessment for minimum 99.8pc molybdenum ingot jumped to $75-80/kg in-warehouse Rotterdam yesterday, up from $65-70/kg late last week.</p><p>"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."</p><p>"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."</p><p>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.</p><p>"There is zero availability on the ground and some people actually flew some material from China," a trader in Europe said.</p><p>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.</p><p>"I am not going to take a position when prices are at an all-time high," the trader said.</p><p>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 <i>Argus</i>.</p><p>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. </p><p>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.</p><p>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. </p><p>Meanwhile, Chinese ferro-molybdenum prices are expected to <a href="https://metals.argusmedia.com/newsandanalysis/article/2408316">take a pause</a> 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.</p><p>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. </p><p>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.</p><p class="bylines">By Cristina Belda</p></article>
