Three Factors Sent down China’s Molybdenum Concentrate Output in January

SHANGHAI, Feb 9 (SMM) - In January 2023, China’s molybdenum concentrate output was 17,700 mt, a drop of 6% MoM.

Firstly, healthy profitability of molybdenum concentrate in 2022 has led to a large number of mines in south China closing in January. This reduced the output of molybdenum concentrate. Secondly, during the CNY holidays in January, some mining enterprises stopped production for maintenance, thereby reducing the output of molybdenum concentrate. Thirdly, because the downstream demand of the molybdenum market is relatively stable and the demand for production has not been met, most mining companies adopted a stable mining plan. 

As mining companies fully resume their production after the Lantern Festival, SMM expects that molybdenum concentrate production will rally and exceed 19,000 mt in February.