High Production Costs Drive Successive Price Hikes for Molybdenum Wire Products

SMM News on June 13:

According to SMM sources, due to the high consolidation of prices for molybdenum concentrate and upstream raw materials such as ammonium molybdate, downstream molybdenum product processing enterprises in Sichuan, Shandong, Jiangsu, and Jilin have adjusted the sales prices of molybdenum wires and other products. Among them, the increase in wire-cut molybdenum wires is 80-100 yuan per 10,000 meters. Today, SMM's wire-cut molybdenum wires are quoted at 2,200-2,400 yuan per 10,000 meters, up about 7% from the beginning of the year. This product is mainly used for electric discharge wire cutting processing. The increase in modified-drawn molybdenum wires is 30-60 yuan per kilogram.

Since April, the global molybdenum concentrate market has witnessed a rapid price surge driven by supply tightness and other favorable factors. As of today, 45%-50% molybdenum concentrate is quoted at CNY 3,830-3,860 per ton-degree, reflecting severe shortages in market availability. This price hike has triggered a downstream cost-push effect, particularly impacting molybdenum rods and wires, which are highly sensitive to raw material costs.

According to SMM's analysis of production processes and material loss rates, each CNY 100 increase per ton-degree in 45% molybdenum concentrate translates to a CNY 28 rise in the cost of 0.18mm wire-cut molybdenum wire per 10,000 meters. Since April, the average price of 45% molybdenum concentrate has climbed by CNY 490 per ton-degree, leading to an estimated cost increase of CNY 137 per 10,000 meters for wire-cut molybdenum wire (excluding fluctuations in auxiliary materials).

The recent collective price adjustments by molybdenum wire manufacturers aim to offset rising costs and ensure industry sustainability. These measures are crucial for maintaining a healthy and balanced molybdenum value chain.