SHANGHAI, Oct 28 (SMM) - Transactions in the downstream molybdenum chemicals and other markets thinned as molybdenum concentrates prices fell sharply. Molybdenum fines fell slightly and deeply processed products like molybdenum strips are likely to have price cuts in the future.
The market demand weakened in high season amid the dual control policy and declining demand from mills. Ferro-molybdenum prices decreased about 11.8% from August as of October 28, but molybdenum metal and molybdenum chemical prices stabilised before October 26 due to stable demand and supply.
But recently, Luming Mining sold 4000 mt of molybdenum concentrate at a price of 2,270-2,295 yuan/mt. Molybdenum concentrate companies have followed suit and lowered the prices. Concentrate prices fell all the way to 2,200 yuan/mt. Therefore, the market held a wait-and-see outlook and the transactions declined. The prices of ammonium molybdate and high-purity molybdenum oxide fell. Although the quotes of the fines were stable, the market transaction price has dropped to 302 yuan/kg.
Many molybdenum bar, molybdenum wire and other deep processing companies held bearish outlook on the future market. The company believed that the market’s psychological critical price for molybdenum fines stands at 300 yuan/kg. The price reduction is likely to approach in the near future as the prices of molybdenum concentrate continues to fall and steel mills delay entering the market.