Downstream demand is yet to be released, and the molybdenum market fluctuates rangebound [SMM Molybdenum Daily Review]

SMM News on July 17:

Today, the molybdenum market was mainly characterized by fluctuating rangebound. The sentiment of suppliers holding molybdenum concentrate loosened, and transaction prices slightly declined. The tender for ferromolybdenum by steel mills continued to increase in volume, and ferromolybdenum plants faced significant cost pressure, with insufficient willingness to sell at low prices. As a result, market transaction prices were relatively concentrated. There were no bright spots in the demand for molybdenum chemical products such as ammonium molybdate, and market prices were mainly in a weak consolidation phase.

As of today, SMM reported that the price of molybdenum concentrate with a grade above 50% closed at 4000-4030 yuan/mtu, a decrease of 20 yuan/mtu from the previous day. On July 17, a molybdenum concentrate enterprise in Jiangxi sold molybdenum concentrate with a grade of 45%-50% at a price of 4010 yuan/mtu, with a trading volume of 128 mt. Downstream ferromolybdenum plants had a strong wait-and-see sentiment, mainly stockpiling based on rigid demand.

Today, SMM reported that ferromolybdenum closed at 252,000-255,000 yuan/mt, an increase of 5,000 yuan/mt from the previous trading day. Domestic mainstream steel mills' tenders gradually entered the market, providing strong cost support for ferromolybdenum. With the exit and consumption of low-cost ferromolybdenum in the early stage, the inventory of the ferromolybdenum industry declined. The low transaction prices in steel tenders slightly increased compared to the previous period, and transaction prices concentrated in the range of 252,000-255,000 yuan/mt.

Today, the molybdenum chemical market was mainly in the doldrums. SMM reported that ammonium tetramolybdate closed at 244,000-248,000 yuan/mt, unchanged from the previous trading day. Downstream demand was mediocre, and trading was poor.

Overall, the downstream molybdenum industry generally faced inverted margins, with poor industry profitability, which constrained the increase in ore prices. In the short term, it is still necessary to wait for demand release to drive the market. It is expected that the molybdenum market will mainly fluctuate rangebound in the subsequent period.

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