Overseas Molybdenum Market Rises Along with Increased Stocking Demand from Domestic Steel Mills, Molybdenum Market Advances [SMM Molybdenum Daily Review]

SMM February 4:

China's domestic molybdenum market rebounded slightly today. The international molybdenum oxide market held up well, boosting domestic market sentiment. On February 3, a mine in Yunnan auctioned molybdenum concentrate, with the final transaction price rising to 4,115 yuan/mtu. This drove up the negotiation center for domestic spot orders. Today, prices for major domestic molybdenum products, including molybdenum concentrate, ferromolybdenum, and molybdenum chemicals, generally rose, with active market trading.

Driven by the linked increase in the international molybdenum market, domestic raw material suppliers showed significantly stronger willingness to hold prices firm. The daily average prices for molybdenum concentrate (≥45%, ≥50%) rose by 70 yuan/mtu, reaching 4,115 yuan/mtu and 4,145 yuan/mtu, respectively. High raw material procurement costs directly supported ferromolybdenum offers. The daily average price for ferromolybdenum (60%≤Mo≤65%) increased by 1,500 yuan/mt, reaching 262,500 yuan/mt. Today, the mainstream tender price range for ferromolybdenum was 260,000-263,000 yuan/mt, slightly higher than the previous trading day. Approaching the Chinese New Year, concentrated restocking demand from steel mills continued to be released, resonating with tight raw material supply and pushing the tender center steadily upward. Today, ferromolybdenum tender prices from steel mills in Hunan and Northeast China were concentrated in the range of 263,000-263,800 yuan/mt. Suppliers held offers firm, with mainstream offers already moving above 265,000 yuan/mt.

In the chemical products segment, most prices followed the increase, but overall transactions remained mediocre. The daily average prices for ammonium molybdate and ammonium heptamolybdate both rose by 2,000 yuan/mt, reaching 256,000 yuan/mt and 260,000 yuan/mt, respectively.

Market participants currently hold optimistic expectations for the future. Supported by costs, released rigid demand, and international linkage, the molybdenum market is expected to continue its strong performance in the short term, with prices likely to fluctuate upward.