Molybdenum Prices may Fall further as the Bid of Molybdenum Oxide in Henan Yesterday was Slack

SHANGHAI, May 11 (SMM) - According to the SMM research, on May 10, a molybdenum mine in Henan Province conducted bidding on molybdenum oxide. The bidding volume is about 240 mt, and the traded price is 2,840-2,855 yuan/mt. The benchmark price is set at 2,840 yuan/mt. The enthusiasm of enterprises participating in the bidding was poor, which further reduced the transaction in the molybdenum market.

In the auction, the molybdenum oxide grade is over 52%, most of them were obtained by large molybdenum companies in Shaanxi. The bidding was slightly slack as the overall confidence of downstream enterprises was poor.

Since the end of April, the domestic molybdenum market has been cooled down. Domestic molybdenum prices surged before dropping because steel mills kept lowering the prices, the fear of high prices among traders and producers was increasing, and the mine supply was rising. At the beginning of May, large-scale mines in northeast China cut prices to ship, which shakes the market confidence and further drags down the bid price yesterday.

SMM believes that the online auction undoubtedly cools down the domestic molybdenum market. Some traders have already began to dump their goods, and the prices may fall further in the future market.