SHANGHAI, Oct 21 (SMM) – According to customs data, China imported 2,153 mt of molybdenum concentrate and molybdenum oxide in September 2021, a sharp decrease of 52.7% from September. The total export volume was 1,874 mt, an increase of 127.4% from September. The balance between imports and exports decreased from 3,729 mt in August to 279 mt, a decline of 92.5%.

SMM understood that the international molybdenum price is significantly higher than the domestic price and the domestic demand is weaker, resulting in a substantial decrease in the import volume and a significant increase in the export volume. According to SMM data, the price of molybdenum in Busan in September was about $18.6/lb with molybdenum content, or 2,620 yuan/mtu, which is much higher than the domestic price of 2,450 yuan/mtu.

According to customs data, China’s ferromolybdenum imports and exports in September were 1.25 mt and 1,785 mt, respectively, a decrease of 99.1% and 28.4% from August. The main reason for the decrease in ferromolybdenum exports is that domestic ferromolybdenum manufacturers have produced on-demand amid lower prices. At the same time, under the influence of environmental protection and power rationing, the output has decreased significantly, and the export volume has been reduced.

In October, the price gap between the overseas market and the domestic market remained amid the impact from supply and freight fees, and is expected to widen. Therefore, SMM predicts that the import volume of molybdenum products may further decrease in October.