In recent days, domestic molybdenum market prices have shown a relatively stable trend.
From the supply side:
Molybdenum mines’ output is stable, profit margins are considerable, and mining companies are optimistic, thus their willingness to sell is limited. Sellers of ore have a prominent bullish sentiment, together with low social inventory levels, resulting in price increases. Recently, mainstream molybdenum concentrate quotes have been around 3,850 yuan/mt and above, with low-priced sources hard to find.
From the demand side:
According to SMM, due to the recent general rise in non-ferrous metal prices, the raw material costs in the molybdenum-containing steel market have increased, significantly compressing steel profit margins. Meanwhile, the end-user market demand remains stable, with few new demands, leading to a low acceptance of rising product prices in the downstream market. Therefore, steel mills are cautious in procuring raw materials.
This sentiment has spread to the ferromolybdenum market, which is simultaneously affected by high raw material prices and downstream price suppression. Additionally, there is difficulty in restocking raw materials. Quotes are mixed. As of May 28, the mainstream steel tender volume for ferromolybdenum was close to 9,000 tons, with some buyers delaying entry due to price concerns.
In the molybdenum chemical sector, some market participants indicated that the recent molybdenum market risk has increased, with production strictly based on sales, and traders mainly consuming existing inventory, suspending restocking plans.
Overall, the current domestic molybdenum market is characterized by "tight supply, strong raw material prices, and lagging demand". SMM expects molybdenum prices to continue consolidating at high levels in the short term.
