Stainless steel off-season and steel procurement driving down prices exert dual pressure; today, the domestic molybdenum market continues to decline [SMM Molybdenum Daily Review]

SMM June 26 News:

Today, the molybdenum market is mainly in the doldrums. The demand for ferromolybdenum in the stainless steel market has declined, leading to a significant drop in the tender price of ferromolybdenum. Suppliers of ferromolybdenum are actively selling their stocks, with quotes showing notable flexibility. The prices of downstream molybdenum products are weak, driving down the prices of ore.

As of today, SMM 45% molybdenum concentrate closed at 3,780-3,810 yuan/mtu, down 30 yuan/mtu from the previous day. Downstream players hold a bearish outlook on the future market and show poor enthusiasm for purchasing ore at high prices, resulting in fewer spot orders in the market.

Today, SMM ferromolybdenum closed at 238,000-242,000 yuan/mt, down 2,000 yuan/mt from the previous trading day. The stainless steel industry is not performing well in terms of profitability, and with the arrival of the off-season, market demand expectations are poor. The tender price of ferromolybdenum has shown a significant decline. The leading enterprise in the stainless steel industry has set the tender price at 236,000 yuan/mt. Due to the market psychology of rushing to buy amid continuous price rise and holding back amid price downturn, spot orders for ferromolybdenum are sluggish, and prices are under pressure. Today, the molybdenum chemical market is mainly operating steadily. Market demand is weak, and ammonium molybdate production and delivery are mostly based on orders. The industry is not performing well in terms of profitability, and enterprises show poor enthusiasm for entering the market. Transaction prices are mainly declining. SMM ammonium tetramolybdate closed at 230,000-232,000 yuan/mt, down 2,000 yuan/mt from the previous trading day.

Overall, the molybdenum market has been trading sideways at high levels for a long time. The downstream molybdenum product industry is not performing well in terms of profitability, but prices are constrained by weak demand, making it difficult to rush to buy ore. This has ultimately formed a certain backlash on the industry. In the short term, the market may continue to operate weakly, and subsequent attention should be paid to the operation of the stainless steel industry and news from the ore sector.

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