China Ferro-molybdenum Output Climbed in February, Forecast for March

SHANGHAI, Mar 9 (SMM) – In February 2023, China’s ferro-molybdenum output was 17,100 mt, a growth of 6% MoM.

The increase in ferro-molybdenum production in February was mainly attributable to two factors. First, ferro-molybdenum smelters gradually resumed production and increased operating rates after CNY holidays. Second, ferro-molybdenum orders placed before CNY needed to be delivered in February, driving smelters to produce actively.

Entering March, new orders in the market are limited since the bid solicitation volume of ferro-molybdenum by steel mills hit a new low last month. Moreover, high cost of molybdenum concentrate and steel mills pushing for lower bid prices have put some smelters at risk of incurring losses, and they plan to cut output. As such, the output of ferro-molybdenum will decrease to a certain extent in March.