The ore end of the molybdenum market remains stable temporarily, with downstream molybdenum products mainly following the price increase trend [SMM Molybdenum Daily Review]

SMM News on July 14:

Today, the molybdenum market remained in a high consolidation phase. The prices of upstream molybdenum concentrate fluctuated at highs, with mines mainly shipping according to orders. The price center of spot orders for molybdenum concentrate shifted upwards. The tender volume for downstream ferromolybdenum from steel mills decreased slightly, driven by strong cost factors, and the transaction price of ferromolybdenum maintained an upward trend.
As of today, SMM's 50% and above molybdenum concentrate closed at 4020-4050 yuan/mtu, unchanged from the previous day. A molybdenum concentrate enterprise in Jilin sold 50% molybdenum concentrate at 4020 yuan/mtu today, with the trading volume yet to be counted. The market circulation was tight, with limited information on suppliers' willingness to sell. Downstream ferromolybdenum plants mainly engaged in just-in-time procurement.
Today, SMM's ferromolybdenum closed at 254,000-258,000 yuan/mt, up 1000 yuan/mt from the previous trading day. Ferromolybdenum enterprises faced significant cost pressure, with obvious losses. Enterprises had insufficient willingness to sell at low prices, forcing steel mills to raise procurement prices. The tender price for ferromolybdenum at a large domestic stainless steel plant was 250,000 yuan/mt, with the trading volume yet to be determined. Tender prices at steel mills in Jiangsu, Hebei, and other places were mostly concentrated around 255,000 yuan/mt. Overall, downstream steel mills engaged in purchasing as needed, with strong fear of high prices. Suppliers were active in selling, and market circulation was relatively ample.
Today, the molybdenum chemical market mainly followed the upward trend of upstream raw materials. SMM's ammonium tetramolybdate closed at 246,000-248,000 yuan/mt, up 2000 yuan/mt from the previous trading day. Downstream demand was mediocre, and trading was poor.
In summary, the upstream ore sector, supported by tight supply, had limited bargaining space and maintained high prices in the short term. Downstream molybdenum products such as ferromolybdenum and molybdenum chemicals were strongly driven by costs. Coupled with the entry of large steel mills into tenders, market transactions tended to become more active. In the short term, downstream molybdenum products mostly followed the upward trend. Subsequent attention should be paid to the operation of the stainless steel industry and news from the ore sector.

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