Ferro-molybdenum prices drifted lower in Europe on Friday June 20, as market participants reported reduced buying activity on declining demand, marking the beginning of the traditionally quiet summer period.

FeMo quotation slid down to $34.50-35.20 per kg on an in-warehouse Rotterdam basis, while molybdic oxide prices slipped to $14.30-14.50 per lb. Despite the general dearth of activity, however, theories were abundant as to how market dynamics will proceed over the course of the summer. Following the unexpected spike in prices at the end of the first quarter, which continued well into the second quarter, most participants appeared afraid the bubble would burst quickly, leading to a collapse in the market and a catastrophic reversal of the gains made. The initial rise was attributed to earthquakes in Chile, but when this proved to be less influential than expected, market participants began to look for other reasons for the spike, prompting speculation over possible delays to new supply and a shortage in the spot market.

• [Editor:Mango]