Steel procurement volume increased, and ferromolybdenum transactions were active [SMM Molybdenum Daily Review]

SMM reported on July 16:

Today, the molybdenum market is generally under pressure. The tender price for molybdenum concentrate from a mine in Henan was announced yesterday, and the transaction price did not show significant volatility. The tender prices for ferromolybdenum from steel mills downstream are generally fluctuating rangebound within the range of 253,000-254,000 yuan/mt. However, the molybdenum chemical sector, including ammonium molybdate, lacks demand support, and prices have slightly loosened.

As of today, SMM's molybdenum concentrate with over 50% Mo content closed at 4020-4050 yuan/mtu, unchanged from the previous day. On July 15, a molybdenum concentrate enterprise in Henan sold 45%-50% Mo content molybdenum concentrate at 4000 yuan/mtu, with a trading volume of 100 mt. In the afternoon, the center of quoted prices in the molybdenum concentrate market slightly moved down, with the center of some spot orders' transaction prices at 3990 yuan/mtu.

Today, SMM's ferromolybdenum closed at 250,000-256,000 yuan/mt, down 1000 yuan/mt from the previous trading day. With large steel mills entering the tender market, ferromolybdenum transactions have become active. However, the tender prices from steel mills are mostly fluctuating rangebound around 253,000 yuan/mt. Ferromolybdenum enterprises have limited room for negotiation, making it difficult to achieve high market prices. The overall center of transaction prices has slightly declined.

Today, the molybdenum chemical market is generally in the doldrums. SMM's ammonium tetramolybdate closed at 244,000-248,000 yuan/mt, unchanged from the previous trading day. Downstream demand is mediocre, and trading is poor.

Overall, the downstream molybdenum industries are generally operating at a loss, with poor industry profitability, which restricts the increase in ore prices. In the short term, it is still necessary to wait for demand to be released to drive the market. It is expected that the molybdenum market will remain sideways in the subsequent period.

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