French nickel producer Eramet sees molybdenum prices in 2006 easing below the 2005 levels despite growing supply concerns in South America, a senior official said during a news conference in Tokyo on Tuesday.

According to Platts' assessments, spot prices of molybdenum oxide of Western grade surged to $40/lb in June 2005, then eased in July to trade in a range of $29-31.50/lb, and then moved further down to $22.25-24/lb in the last week of December.

From January to June 2006, moly oxide prices mostly stayed in the early $20s/lb. The moly oxide average price for the month of June was $25.531/lb.

The Eramet senior official in charge of manganese operations said he found current price levels high, but does not see the prices rising to 2005 levels despite strikes at Mexican mines and reduced output in Chile.

"The prices are to fall from 2005, but would stay at a 'good level'", the official said.

Eramet expects to emerge as a major player in the recycling of molybdenum and vanadium which are used as catalysts at oil refineries. The acquisition of Bear Metallurgical Company in the US in late 2005, has enabled Eramet to become the "number one" catalyst recycler in the world, said the company CEO Jacques Bacardats.