Why the Supply of Molybdenum Concentrate Increased in Nov?

SHANGHAI, Dec 7 (SMM) - According to SMM data, the domestic molybdenum concentrate output in November 2021 was approximately 19,300 mt, an increase of 730 mt or 4.21% from October.

As far as SMM understood, the overall domestic molybdenum concentrate production in November was mixed, resulting in no major changes in domestic molybdenum concentrate supply.

Part of the production lines of a large mine in Heilongjiang resumed production. Driven by this, the overall output of molybdenum concentrate in Heilongjiang increased by about 1,000 mt compared with October. At the same time, major production areas including Shaanxi and Henan saw an output growth of around 300 mt amid the improvement in the domestic molybdenum market in mid-to-late November and the previous inventory decline at large mines.

On the other hand, many molybdenum mines in Zhejiang were affected by the power rationing policy, and the beneficiation plants implemented two-on three-off shift schedules. This significantly reduced the output. The snowfall and low-temperature weather in Inner Mongolia and parts of the north-east affected the output at some mines due to water supply issues.

SMM believes that the supply of domestic molybdenum concentrates may still increase in December. At present, the overall sentiment of the domestic molybdenum market is relatively positive. Many mines have low inventories due to previous inventory declines and active purchases in the market. This combined with the continued price gains is likely to grow the supply of molybdenum concentrate further in December.