SMM Analysis On China September Ferro Molybdenum Production And October Forecast

According to SMM statistics, China's ferro molybdenum production in September increased by about 10% MoM. The main reason was that the domestic ferro molybdenum bidding volume increased from 15,000 mt in August to 16,000 mt in September, indicating very strong market demand. Additionally, the low spot inventory of ferro molybdenum led major ferro molybdenum plants to resume high production schedules.

Entering October, although the production schedule of downstream molybdenum-containing steel slightly decreased, it remains at a high level, and demand for ferro molybdenum will not significantly decrease. Coupled with most ferro molybdenum smelters still producing based on existing orders, future new orders will only further enhance capacity utilisation rates. Therefore, it is expected that ferro molybdenum production in October will continue to increase slightly.