As the off-season approaches downstream, low prices reappear in ferromolybdenum tenders [SMM Molybdenum Daily Review]

SMM News on June 20:

Today, the upstream ore prices in the molybdenum market remained high and rangebound. Affected by factors such as price suppression in steel tenders, the downstream ferromolybdenum prices showed a slight decline. As of today, SMM 45% molybdenum concentrate closed at 3,850-3,880 yuan/mtu, unchanged from the previous day. Downstream enterprises mainly restocked based on immediate needs. Today, ferromolybdenum transactions were suppressed by the downward adjustment of tender prices by steel mills, causing the center of market transactions to fall. Products such as stainless steel are about to enter the off-season. The tender price of a steel mill in Shanxi fell below 240,000 yuan/mt. Market pessimism is strong, with tender prices of steel mills continuously declining. SMM ferromolybdenum closed at 243,000-247,000 yuan/mt today, a decrease of 500 yuan/mt from the previous trading day. Today, the overall transaction volume in the molybdenum chemical market was poor. The mainstream quotations for primary ammonium paramolybdate were in the range of 235,000-237,000 yuan/mt, largely stable compared to the previous trading day. Downstream enterprises had sluggish demand and mainly restocked based on immediate needs. Currently, the raw material end of the molybdenum market is fluctuating at highs. The downstream molybdenum products industry is facing both losses and poor demand, lacking the strength to follow the rise in raw material prices. The tug-of-war between sellers and buyers remains deadlocked, with limited changes in market prices. In the short term, the market is expected to remain rangebound. Subsequently, SMM will continue to monitor the operation status of molybdenum-based stainless steel enterprises and ore mines.

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