SHANGHAI, Jan 28 (SMM) - [Review] During the Chinese New Year holiday, the domestic molybdenum market was relatively stable, and the prices remained flat. As of January 20, the mainstream price of 45% molybdenum concentrate was 4,540-4,560 yuan/mtu, the mainstream price of 50% molybdenum concentrate was 4,560-4,580 yuan/mtu, and the mainstream price of ferromolybdenum was 298,000-305,000 yuan/mt (Cr50%).

Supply: In the domestic market, amid the bullish outlook on the demand and prices, the production targets of ferromolybdenum have not yet been complete, hence the mainstream molybdenum mines maintained normal production during the CNY holiday and the ferromolybdenum smelters produced stably as well to ensure their delivery.

In overseas markets, the natural gas consumption was limited amid the warm weather in Europe this winter, hence the natural gas reserves hit a record high this winter. As such, the energy prices in Europe and other regions declined significantly, which promoted the resumption of related production companies and the market demand. Therefore, the international molybdenum prices continued to increase. As of the evening of January 27, international molybdenum oxide prices stood at $32.5-34.2/lb (equivalent to 5,493-5,780 yuan/mt), ferromolybdenum prices in Europe were $85-88/kg (equivalent to 391,000-404,800 yuan/mt (Cr60%). The export window of molybdenum raw materials may open amid the widening price and the limited mining supply in South America, which promoted the domestic molybdenum prices.

[Post-holiday outlook] As the downstream enterprises resume the production and the overseas molybdenum prices increase after the CNY holiday, the demand increases while the supply is insufficient. The market players were bullish on the domestic molybdenum market and SMM predicts that molybdenum prices will remain stable after the holiday.