Jinduicheng Molybdenum Co., Ltd.: Due to the decline in molybdenum product prices YoY, net profit in 2024 fell by 3.18% YoY.

The 2024 performance report released by Jinduicheng Molybdenum Co., Ltd. on the evening of January 16 shows that in 2024, the company achieved an operating revenue of 13.5554 billion yuan, up 17.55% YoY; total profit reached 3.9027 billion yuan, down 5.32% YoY; and net profit attributable to shareholders of the publicly listed firm amounted to 3.0005 billion yuan, down 3.18% YoY.

Regarding the reasons for changes in major financial data, Jinduicheng Molybdenum stated that in 2024, the company focused on "extending, supplementing, and strengthening the industrial chain," aimed at doubling "quality, efficiency, and volume," seized market opportunities, intensified market expansion and marketing efforts, enhanced internal efficiency, and strictly controlled costs and expenses, successfully completing the annual business plan. In 2024, the average international market price of MW molybdenum oxide was $21.3/lb Mo, down 11.76% YoY, while the average domestic price of ferromolybdenum was 233,000 yuan/mt, down 10.90% YoY. The decline in molybdenum product prices compared to the same period last year slightly impacted the company's profitability.

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Reviewing the historical prices of SMM ferromolybdenum 60% in 2024, the average price of ferromolybdenum 60% in 2024 was 234,301.65 yuan/base mt, a decrease of 23,778.93 yuan/base mt compared to the 2023 average price of 258,080.58 yuan/base mt, representing a YoY decline of 9.21%. On December 31, 2024, the average price of ferromolybdenum 60% was 233,500 yuan/base mt, an increase of 18,500 yuan/base mt compared to the December 29, 2023 average price of 215,000 yuan/base mt, with a growth rate of 8.6%.

According to SMM quotes, the average price of ferromolybdenum 60% on January 17 was 233,500 yuan/base mt, unchanged from the previous trading day. Supported by tight supply of molybdenum concentrate and strong reluctance to sell among suppliers, the average price of ferromolybdenum has remained stable at 233,500 yuan/base mt since mid-to-late December. Currently, domestic molybdenum prices are running steadily, with stable steel mill tenders and mine shipments entering the market, ensuring a stable operation of the molybdenum market.

Regarding the outlook for molybdenum, overall, supported by raw material costs and the approaching Chinese New Year break, molybdenum prices are expected to remain stable in the short term. As for the medium and long-term trend, attention should be paid to whether downstream demand, such as stainless steel, will improve.