China Molybdenum Concentrate Production Continued to Decline in June amid Weak Demand and Mine Maintenance [SMM Analysis]

SHANGHAI, Jul 5 (SMM) - SMM data showed that the domestic production of molybdenum concentrate in June was about 19,600 mt, a decrease of about 770 mt from May, a month-on-month decrease of 4%. 
Molybdenum concentrate prices rebounded in June when compared with May due to improved pandemic situation, but fell back later in the month as a result of weak demand. Poor demand discouraged mines from producing, and some even lowered their output.  Two major mines in north-east China were shut down briefly due to routine maintenance and road damage, which also caused a decrease in the supply of domestic molybdenum concentrate to a certain extent.
 In July, due to the current backlog of finished product inventory at some steel mills, downstream demand remains weak. Smelters and chemical companies were also extremely cautious about purchasing molybdenum concentrates. Mines had low enthusiasm for production. Hence, both supply and demand will decline this month.