From 18:00 on July 18, a rare weather process of continuous heavy precipitation occurred in Zhengzhou and its surrounding areas, with torrential rains and torrential rains throughout the city, which had a serious impact on local production and life, but SMM learned that Henan molybdenum enterprises were limited affected by this, and there was no obvious fluctuation in the performance of the national molybdenum market for the time being.
SMM learned from several large molybdenum enterprises in Henan that the affected areas are mainly concentrated in Zhengzhou and surrounding areas, while molybdenum enterprises are mainly concentrated in Luanchuan, Luoyang, where there is no disaster for the time being, Luo Mo, Longyu and other enterprises have not been affected. At the same time, it is learned from the Luoyang Meteorological Bureau that in the next 7 days, Luoyang will be dominated by light rain and cloudy weather, and the overall possibility of flooding is unlikely. At the same time, it is learned from some market people that the molybdenum enterprises in Zhengzhou are mainly trading enterprises, such as Xingyan Mining, and the overall scale is small, so the overall impact of the disaster on the supply side of molybdenum city is limited.
On the demand side, the stainless steel plant, as the main downstream user of ferromolybdenum, has received a very limited impact on the disaster this time. According to SMM, there is only one stainless steel plant in Zhengzhou, Henan Province. Although this steel plant has stopped production and sales due to heavy rain, the annual output of stainless steel in this steel plant is about 1.4 million tons, accounting for only about 3% of the national output, and its main products are 200 series stainless steel. However, the 300 series stainless steel with large demand for ferromolybdenum only accounts for about 1x3 of its production capacity.
Overall, the flood in Henan did not have a significant impact on the domestic molybdenum city supply and demand, steel mill bidding and molybdenum concentrate supply and other key factors remain stable, molybdenum city is expected to remain stable in the short term.