Molybdenum Market Update (November 22, 2012)

US ferromolybdenum spot prices were between $12.50 and $13 a pound this week, with most transactions being completed in the lower half of that range, according to Metal-Pages. The latest price is down from $13.25 to $13.75 a month ago.

Molybdic oxide hovered around $10.90 to $10.95 a pound, down slightly from $11 a month ago.

Steelmakers account for most of the demand for US molybdenum (the metal is a key element in steelmaking), and in a bullish sign for the metal, steel production appears to be picking up. The US produced 1,792,000 net tons of raw steel in the week ended November 17, 2012, up 2.6 percent from the previous week, according to the American Iron and Steel Institute. Year to date, the country’s output has risen 3.3 percent from the same period in 2011, to 86,349,000 tons.

Global steel production is also showing some signs of improvement. The World Steel Association said that the combined output of 62 countries surveyed rose 1.3 percent in October from a year ago, to 126.1 million metric tons.