Bidding Prices of Steel Mills Fell Further, Leading to a 3% Increase in Output of Ferromolybdenum in May

SHANGHAI, Jun 2 (SMM) -

The domestic ferromolybdenum output stood at about 16,700 mt in May, up 500 mt or 3% on the month. Domestic ferromolybdenum saw a slight increase in supply.

In May, the prices of domestic molybdenum fell further, but the supply of ferromolybdenum increased. SMM believes that there are mainly the following two aspects: The main reason is that although the domestic ferro-molybdenum prices continued to fall in May, the demand from steel mills remained stable. According to SMM statistics, the total amount of domestic ferromolybdenum traded through bids in May was about 12,000 mt, up 25% from April. The steel mills restocked raw materials actively in order to ensure the production during seasonal high in June and July. Some traders bought bottom as prices fall, so the demand for ferromolybdenum has increased. In addition, due to the impact of the pandemic in north-east China in April, the production of some orders was forced to be postponed to May, pulling up the output in May. According to statistics, the output of ferromolybdenum in north-east China was nearly 10,000 mt in May, an increase of about 300 mt compared with April.

In June, with the improvement of the pandemic in Jiangsu, Zhejiang and Shanghai and the launch of national economic policies, the market sentiment has improved significantly. As the trading volume increased in recent days and downstream demand is expected to rebound with the approaching seasonal high in June and July, output of ferromolybdenum is expected to increase.