Ferromolybdenum Price Falls Below 260,000, Mines Hold Back from Selling as Market Competition Intensifies [SMM Molybdenum Daily Review]

SMM November 4 News:
The molybdenum market was mainly under pressure today. Mainstream steel mills entered the market for tenders, with tender prices falling below 260,000 yuan. Cash tender prices were concentrated at 256,500-257,000 yuan/mt. Ferromolybdenum market prices declined sharply again, causing significant losses for ferromolybdenum plants and a noticeable decrease in their willingness to accept orders. In the afternoon, some steel mills still entered the market to purchase, resulting in a divergence in ferromolybdenum transactions where volume increased but prices decreased. The molybdenum concentrate market showed a significant reduction in volume. Mainstream mines held back from selling, tightening market circulation compared to the previous period, making low-priced sources difficult to find. Coupled with the support from the stabilization of international molybdenum oxide prices, the market's bearish sentiment eased somewhat, awaiting guidance from mine volume releases.

As of today, SMM 45% molybdenum concentrate closed at 4,170-4,200 yuan/mtu, down 30 yuan/mtu from the previous trading day. Since October, although there have been no major production cuts at domestic mines, recent low prices have led mines to hold back and restrict sales, resulting in tightened circulation in the molybdenum concentrate market and fewer spot order transactions. Many enterprises mainly conducted shipments under long-term contracts, still awaiting guidance from mine volume releases.
Today, SMM ferromolybdenum closed at 257,000-266,000 yuan/mt, down 5,500 yuan/mt from the previous trading day. Mainstream steel mills entered the market for tenders, with opening prices falling significantly, and the sentiment to drive down prices remained strong. In the afternoon, some steel mills took the opportunity to enter the market for tenders, but with severe price inversions, many ferromolybdenum plants suspended quotations. Industry transactions tended to be sluggish. As some suppliers cleared their ferromolybdenum inventory, the trading logic in the ferromolybdenum market may tilt towards the cost side, providing some price support.

The molybdenum chemical market was mainly weak and stable today. SMM ammonium tetramolybdate closed at 254,000-257,000 yuan/mt, and SMM ammonium heptamolybdate closed at 258,000-261,000 yuan/mt, both down 2,000 yuan/mt from the previous trading day. Demand in the molybdenum chemical market was sluggish, and with the collapse on the cost side, the market operated mainly under pressure.

Overall, the stabilization of international molybdenum oxide boosted sentiment in the domestic molybdenum raw material market. Combined with mines holding back from selling, liquidity in the molybdenum raw material market decreased. The severe price inversion in the downstream ferromolybdenum industry led to reduced operating rates, while downstream steel mills entered the market at low prices, leading to increased demand. Back-and-forth negotiations between upstream and downstream were intense. The molybdenum market may stabilize, supported by cost and a temporary improvement in the supply-demand imbalance.