SMM Analysis: Steel Tender Prices Drop Unexpectedly; When Will Molybdenum Prices Stabilize?

[SMM Analysis: Steel Tender Prices Fall Beyond Expectations, When Will Molybdenum Prices Show Signs of Stabilizing?]

Entering December, the demand for ferromolybdenum in the steel market has not decreased. In fact, some stainless steel mills, due to the positive profit returns from molybdenum-containing stainless steel, plan to slightly increase production on top of their already high production levels. Therefore, the demand for ferromolybdenum this month is expected to at least remain stable.

On the consumption side, the end-use market's acceptance of molybdenum-containing stainless steel remains stable. Although there are occasional psychological expectations of a "rush to buy amid continuous price rise and hold back amid price downturn," the overall procurement volume has not been affected. Currently, the end-use consumption market's year-end stockpiling plans for molybdenum-containing steel have not significantly advanced, and there is still potential for consumption growth.

SMM analysis indicates that with the intensifying competition among steel mills, molybdenum prices may continue to decline due to fluctuations. However, since most steel mills' stocking demand for ferromolybdenum has not been fully released, there will be opportunities for a price rebound when the demand is concentrated and released.