SMM Analysis Of Ferromolybdenum In July And Forecast For August

According to SMM statistics, China's ferromolybdenum production in July was approximately 14,000 mt, down 1.7% MoM.

In July, the domestic ferromolybdenum market faced two major challenges: on one hand, high raw material prices made it difficult for ferromolybdenum smelters to lock in sufficient quantities of raw materials at reasonable prices, leading operators to proactively reduce their operating rates; on the other hand, downstream steel mills, aiming to control costs, exerted significant pressure on ferromolybdenum procurement prices, resulting in a substantial reduction in ferromolybdenum profits, with many smelters even experiencing losses. Under this dual pressure, ferromolybdenum smelters had to reduce the acceptance of new orders to ease economic losses, leading to a slight decline in ferromolybdenum production.

Looking ahead to August, as the traditional peak consumption season approaches, downstream steel mills hold a relatively optimistic outlook and plan to increase the production of molybdenum-containing steel. Additionally, due to low molybdenum raw material inventories at steel mills, it is expected that the increase in production will stimulate demand for ferromolybdenum products, thereby driving an increase in production. SMM expects ferromolybdenum production to rise in August.