Chinese molybdenum concentrate prices drop
2023-03-08 08:29:44 [Print]
BEIJING (Asian Metal) 8 Mar 23 - Due to the soft demand from terminal users, Chinese molybdenum concentrate market mentality stayed negative during the past week. Currently, the mainstream prices of Chinese molybdenum concentrate 45%min stand at RMB5,080-5,100/mtu (USD33.1-33.2/lb Mo) EXW D/P, down by RMB200/mtu (USD1.3/lb Mo) from late last week. Though most buyers prefer to watch the market and the rare inquiries in spot market continues, considering that terminal users' real demand keeps recovering, insiders believe that the mainstream prices of Chinese molybdenum concentrate 45%min would stay in a stalemate in the coming week.
"Buyers all preferred to watch the market during the past week and we had to drop our price to promote sales. For firm bids, we quote RMB5,100/mtu (USD33.2/lb Mo) now," said a producer in South China. They just sold about 30t of molybdenum concentrate 45%min at RMB5,080/mtu (USD33.1/lb Mo) this Tuesday. However, they refused to sell at any prices below RMB5,300/mtu (USD34.5/lb Mo) just one week ago. Though inquiries in spot market stay rare for the moment, considering that terminal users' demand would recover soon, they believe that the mainstream prices of Chinese molybdenum concentrate 45%min would stay in a stalemate in the coming week.
With an annual production capacity of 18,000t, they produced about 8,800t in 2022 and about 1,700t so far this year. They expect to sell about 800t this month, almost the same as last month. They have around 300t of stocks for the moment, up by about 300t MoM.
"Clients could at most accept RMB5,100/mtu (USD33.2/lb Mo) for the moment and most of them prefer to watch the market now just because of the soft ferromolybdenum demand from steel mills. In order to guarantee our sales volume, we have to drop our price to this level," said another producer in South China. They just sold around 32t of molybdenum concentrate 45%min at this price level this Monday. However, they refused to accept any orders below RMB5,300/mtu (USD34.5/lb Mo) about one week before that. Prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB313,000/t (USD75/kg Mo) delivered D/A 180 days. Considering that downstream market couldn't offer effective support now, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would stay soft in the following week.
With an annual production capacity of 9,600t, they produced about 3,150t in 2022 and about 600t in the first two months of 2023. They expect to produce about 300t in March, the same as last month, holding about 180t of stocks now, up by about 30t MoM.
"Buyers all preferred to watch the market during the past week and we had to drop our price to promote sales. For firm bids, we quote RMB5,100/mtu (USD33.2/lb Mo) now," said a producer in South China. They just sold about 30t of molybdenum concentrate 45%min at RMB5,080/mtu (USD33.1/lb Mo) this Tuesday. However, they refused to sell at any prices below RMB5,300/mtu (USD34.5/lb Mo) just one week ago. Though inquiries in spot market stay rare for the moment, considering that terminal users' demand would recover soon, they believe that the mainstream prices of Chinese molybdenum concentrate 45%min would stay in a stalemate in the coming week.
With an annual production capacity of 18,000t, they produced about 8,800t in 2022 and about 1,700t so far this year. They expect to sell about 800t this month, almost the same as last month. They have around 300t of stocks for the moment, up by about 300t MoM.
"Clients could at most accept RMB5,100/mtu (USD33.2/lb Mo) for the moment and most of them prefer to watch the market now just because of the soft ferromolybdenum demand from steel mills. In order to guarantee our sales volume, we have to drop our price to this level," said another producer in South China. They just sold around 32t of molybdenum concentrate 45%min at this price level this Monday. However, they refused to accept any orders below RMB5,300/mtu (USD34.5/lb Mo) about one week before that. Prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB313,000/t (USD75/kg Mo) delivered D/A 180 days. Considering that downstream market couldn't offer effective support now, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would stay soft in the following week.
With an annual production capacity of 9,600t, they produced about 3,150t in 2022 and about 600t in the first two months of 2023. They expect to produce about 300t in March, the same as last month, holding about 180t of stocks now, up by about 30t MoM.
