The Prices of Molybdenum Fell amid Strong Market Bearish Sentiment

SHANGHAI, Jun 29 (SMM) – The mainstream transaction prices of molybdenum concentrate (45% Mo) stood at 2,690-2,710 yuan/mtu today, down 25 yuan/mtu from yesterday. The mainstream transaction price of 60% ferromolybdenum stood at 177,500-179,000 yuan/mt, down 750 yuan/mt from yesterday.

The domestic molybdenum prices fell again amid weak market demand, and the spread of bearish sentiment is the main reason for the price decrease. SMM learned that in the mid and late June, many steel mills had high inventory and even reduced production due to the sluggish terminal market,  which has been reflected on the ferromolybdenum market, resulting in a decline in demand in the molybdenum market. At present, the total domestic steel bidding in June is less than 9,000 mt, which is far less than expected and drove down the molybdenum concentrate market.

There are still mainstream steel mills planning to reduce production in the near future, and demand may further decline by then. Domestic molybdenum prices are expected to decline.