SMM Analysis: Steel Mills Cut Prices, Molybdenum Market Faces Year-End Restocking Amid Price Uncertainty

SMM Analysis: Large Steel Mills Lower Prices to Release Demand, Molybdenum Market Year-End Restocking Begins

Since late November, steel mills have started to reduce the prices of molybdenum stainless steel and have continued to strongly suppress raw material prices. Due to the simultaneous decline in costs and finished product prices, steel mill profits have been able to remain stable.

Entering December, steel mills' plans to maintain high production schedules for molybdenum-containing stainless steel have not changed. Coupled with limited ferromolybdenum inventory and year-end restocking demand, ferromolybdenum demand is expected to remain strong. It should be noted that as the prices of other raw materials for molybdenum-containing stainless steel may continue to decline, market prices may not have bottomed out yet, and there is a short-term risk of further reductions. This could prolong the period during which molybdenum market prices are under pressure.