SMM analysis on China June ferromolybdenum output and July forecast

According to SMM, China's ferromolybdenum production in June was approximately 14,200 mt, down 8.8% MoM.

In June, the domestic ferromolybdenum market faced both high molybdenum prices and downward pressure on prices from the downstream molybdenum-containing steel market. This significantly compressed the profit margins for ferromolybdenum producers, with many smelters even experiencing losses. Under this dual pressure, ferromolybdenum smelters had to proactively reduce the acceptance of new orders to ease losses, resulting in a noticeable decrease in ferromolybdenum production.

Entering July, as the downstream market enters its traditional off-season, most molybdenum-containing steel producers plan to implement production cuts, which will further reduce the demand for ferromolybdenum. It is expected that ferromolybdenum production will continue to decrease slightly in July.