SHANGHAI, Nov 24 (SMM) – According to customs data, China’s ferromolybdenum and molybdenum oxide exports in October 2021 were 3,178 mt, an increase of 8.35% from September. At the same time, due to the continuous increase in the spread between domestic and overseas prices, China’s ferromolybdenum imports stood at zero amid the closed import window.
As far as SMM understood, the international molybdenum price is higher than the domestic price. Meanwhile, the domestic companies exported actively as the ocean freight cost has declined in October. Moreover, as the prices of auxiliary materials such as ferrosilicon and aluminium pellets have risen, the leading domestic companies preferred to produce molybdenum oxide, resulting in a noticeable increase in molybdenum oxide exports.
Customs data shows that the domestic exports of molybdenum oxide in October were 1,327 mt, an increase of 15.59% compared with September, and a surge of 251.06% compared with August when the domestic molybdenum prices peaked.
In November, the price gap between the overseas and the domestic market remained amid the impact from supply and freight fees, which is still on the rise. Therefore, SMM predicts that the export volume of molybdenum oxide and ferromolybdenum may grow further in November.