China's ferromolybdenum output in May fell

According to SMM statistics, China's ferromolybdenum output in May was about 15,600 mt, down 3.6% MoM.

In May, with the rise in domestic molybdenum prices and the increase in other raw material prices, the profit margin of the downstream stainless steel market was greatly compressed, leading to lower procurement prices of ferromolybdenum. Some ferromolybdenum plants even experiencing losses. As a result, some ferromolybdenum plants, with insufficient raw material restocking and lower prices, chose to reduce spot orders to ease losses, leading to a slight decrease in ferromolybdenum output.

In June, the downstream molybdenum-containing steel market plans to cut output further as spot prices lacked upward momentum. Meanwhile, ferromolybdenum producers are likely to return to losses. Therefore, the ferromolybdenum output is expected to continue to decrease slightly this month.