Extreme volatility characterises European prices

摘要

The unexpected sharp rebound in European molybdenum prices most recently in mid-October appears to have been consolidated. After dipping more than 25% in recent weeks to $23.00-23.50/kg in the first week of October, duty-paid ferro-molybdenum prices are now more than $3.50/kg up from the start of the month, improving to $26.60-27.20/kg. We understand the rebound in prices has been trader-driven, although one ortwo traders reported receiving buying enquiries fonoo tonnes of material from European steelmakers in October. There have also been reports of traders short covering in the expectation of a pick-up in consumer demand in the medium term. We believe the market may stabilise around current levels, with dealers taking stock of current business conditions.