Molybdenum Mines Expected to Ship, Ferromolybdenum Steel Tenders to Follow—Can Molybdenum Prices Rebound? [SMM Analysis]

SMM, December 25:

Today, Luoyang Molybdenum Mine plans to sell molybdenum concentrate. The base price for molybdenum concentrate with a grade of 45-50% is 3,590 yuan/mtu, while that for grades above 50% is 3,620 yuan/mtu. This round of sales will be based on buyer-reported quantities. Buyers have shown relatively cautious purchasing attitudes, and a large-scale restocking scenario has yet to emerge.

【Demand Dynamics】

Thanks to year-end concentrated procurement demand for ferromolybdenum from steel mills, ferromolybdenum demand remains robust. However, as end-users generally plan to restock after the New Year holiday, molybdenum-containing steel prices are under pressure, maintaining a phase of slight spot price reductions. Steel mills, concerned about profit losses, continue to suppress raw material procurement prices and show low acceptance for ferromolybdenum prices above 230,000 yuan.

【Production Status】

Midstream molybdenum producers face multiple challenges, including tight raw material inventories, high raw material prices, and resistance from consumption-side customers to high prices, leading to increased production pressure. Some ferromolybdenum producers have already started reducing operating rates to cope with this situation.

In summary, with end-users likely to begin stockpiling after the New Year holiday and routine maintenance at steel mills expected to have no significant impact on molybdenum market demand, molybdenum prices are anticipated to rebound slightly after the holiday.

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