Driven by High Costs, Downstream Enterprises Such as Molybdenum Wire Manufacturers Successively Raise Prices [SMM Analysis]

SMM June 13 News:

  According to SMM, due to the high and stable prices of raw materials such as molybdenum concentrate and upstream ammonium molybdate, downstream processing enterprises of molybdenum products in Sichuan, Shandong, Jiangsu, and Jilin have adjusted the selling prices of products such as molybdenum wire. Among them, the price increase of wire-cut molybdenum wire is 80-100 yuan/10,000 meters. Today, SMM's wire-cut molybdenum wire closed at 2,200-2,400 yuan/10,000 meters, up about 7% from the beginning of the year. This product is mainly used for wire electrical discharge machining. The price increase of drawn molybdenum wire is 30-60 yuan/kg.

SMM Commentary: Since April, the domestic and overseas molybdenum concentrate markets have been driven by favorable factors such as tight supply, leading to a rapid increase in prices. As of today, 45%-50% molybdenum concentrate closed at 3,830-3,860 yuan/mtu. The market supply is tight, and high prices in the industry are being passed down. Molybdenum rods and molybdenum wire, as downstream links of molybdenum metal, are greatly affected by costs. Based on the production process of molybdenum wire and considering the losses during production, without taking into account the cost fluctuations of other auxiliary materials, for every 100 yuan/mtu increase in the price of 45% molybdenum concentrate, the cost of 0.18mm wire-cut molybdenum wire increases by approximately 28 yuan/10,000 meters. Since April, the average price of 45% molybdenum concentrate has increased by 490 yuan/mtu. Without considering the cost fluctuations of other auxiliary materials, the cost of wire-cut molybdenum wire has increased by approximately 137 yuan/10,000 meters. This collective price increase by molybdenum wire enterprises is mostly to hedge against the risks brought by rising costs, which helps maintain the healthy and sound development of the molybdenum industry.

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