SHANGHAI, Nov 4 (SMM) – The domestic ferromolybdenum output totalled about 13,950 mt in October, down 410 mt or 2.86% on the month.
The ferromolybdenum companies continued to restrict production in October due to the falling prices. According to SMM survey, the bid solicitation volume of the steel mills was about 5,000 mt in October, down 43% on the month. The traders were eager to ship goods, and most ferromolybdenum producers only accept back-to-back orders. The operating rates across the ferromolybdenum in Liaoning dropped significantly.
The ferromolybdenum producers in Liaoning, Henan and other regions also curtailed the production due to the power rationing, and the operating rates across the plants in Beijing and Tianjin were also lowered amid the frequent environmental protection inspections before the Winter Olympics.
The ferromolybdenum prices remained in a downward trend in October, especially when the steel mills forced down the bidding prices in the end of the month as the demand weakened more significantly.
The national output of ferromolybdenum is expected to drop further in November. However, the downward room will be limited as the producers are reluctant to produce amid the weak demand and strong bearish sentiments, and they will schedule the production according to the orders. However, most plants have already been producing on demand, so the further decline in the output will not be significant.
