China's Molybdenum Prices to Edge Up

SHANGHAI, Dec 26 (SMM) - Domestic molybdenum prices continued to rise last week. As of the weekend, the market prices of Mo 45% molybdenum concentrate stood at 3,900-3,920 yuan/mt, and the mainstream prices of ferromolybdenum stood at 270,000-275,000 yuan/mt.

The unstable molybdenum prices overseas have also affected the sentiment of the domestic molybdenum market. Some mining companies and traders sold actively, alleviating the supply tightness of raw materials. Nonetheless, most mining companies were holding back their cargoes awaiting price gains. The offers of molybdenum raw materials are relatively stable for the time being.

The terminal demand for ferromolybdenum is still relatively strong. The bid prices of steel mills fell to 259,000 yuan/mt in the middle of the week before rallying to 271,000-275,000 yuan/mt (by acceptance) at the week’s end.

On the whole, the domestic molybdenum prices rose rapidly last week, while overseas molybdenum prices moved rangebound. In this scenario, steel mills were becoming more cautious about the purchase of ferromolybdenum. Meanwhile, ferromolybdenum smelters faced high raw material prices and high costs. Hence, most of the market participants were cautious. SMM expects that the domestic molybdenum prices will continue to inch higher this week.