China's Output of Molybdenum Concentrate in May Fell Slightly Compared with April

SHANGHAI, Jun 9(SMM) -

The domestic molybdenum concentrate output was about 20,400 mt in May, down 450 mt or 3% on the month.

The domestic output of molybdenum concentrate in May fell slightly compared with April. On the one hand, the domestic molybdenum prices further declined in May. Some mines were less active in producing and carried out short-term maintenance amid the falling prices, resulting in a reduction in the supply of molybdenum concentrate to a certain extent.

On the other hand, as domestic molybdenum prices hit new highs in the early April, some domestic mines maintained a high operating rate, resulting in a serious backlog of mine inventories. In May, due to the fall in market prices, downstream companies were cautious in purchasing, leading to few reduction in mine inventories. Therefore, the mines lowered operating rates to relieve inventory pressure.