The decline in the molybdenum market has slowed down, but the market still remains under pressure [SMM Molybdenum Daily Review]

SMM News on June 27:

Today, the molybdenum market is operating with temporary stability. There are few spot orders for molybdenum concentrate, and market offers are scarce. Mines are mainly shipping under long-term contracts. The steel bidding prices in the ferromolybdenum market remain low, but due to high industry costs, manufacturers are reluctant to sell at lower prices. Market quotes are relatively stable today.
As of today, SMM 45% molybdenum concentrate closed at 3,780-3,810 yuan/mtu, unchanged from the previous day. The inventory of molybdenum concentrate in the industry is low, and suppliers at the mine end are mostly stabilizing prices and shipping goods. However, downstream enterprises are facing inverted margins and have poor purchase willingness. In the short term, the market may remain in the doldrums.
Today, SMM ferromolybdenum closed at 238,000-242,000 yuan/mt, unchanged from the previous trading day. Steel bidding for ferromolybdenum continues to decline, and ironworks are facing inverted profits and are reluctant to sell at lower prices. There are few spot orders in the market, with significant differences in overall quotes, and the market is in a stalemate. Today, the molybdenum chemical market is operating with temporary stability. Market demand is weak, and ammonium molybdate is mostly produced and shipped according to orders. Industry profits are poor, and enterprises have low enthusiasm for entering the market. SMM ammonium tetramolybdate closed at 230,000-232,000 yuan/mt, unchanged from the previous trading day.
Overall, the molybdenum market has been trading sideways at a high level for a long time. Downstream molybdenum product industries have poor profits, but prices are constrained by weak demand, making it difficult to rush to buy amid continuous price rise at the mine end. This ultimately has a certain backlash effect on the industry. In the short term, the market may remain under pressure. Follow-up attention should be paid to the operation of the stainless steel industry and news from the mine end.

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