Chinese molybdenum concentrate prices down
2023-03-16 08:26:52 [Print]
BEIJING (Asian Metal) 16 Mar 23 - Due to the reducing demand and dropping ferromolybdenum market prices, Chinese molybdenum concentrate 45%min market price lost its support and the market mentality maintained negative during the past week. At present, the mainstream prices of Chinese molybdenum concentrate 45%min stand at RMB4,430-4,450/mtu (USD28.9-29/lb Mo) EXW D/P, down by RMB550/mtu (USD3.6/lb Mo) from late last week. Considering that downstream market couldn't offer any effective support and producers' inventory keeps growing, insiders believe that the mainstream prices of Chinese molybdenum concentrate 45%min would keep moving down in the coming week.
"Major steel mills' ferromolybdenum 60%min bidding price we inquired dropped to the latest around RMB294,500/t (USD70.5/kg Mo) delivered D/A and traders only sell at no more than RMB290,000/t (USD69.5/kg Mo) delivered D/P now, so we have to drop our molybdenum concentrate 45%min price accordingly to promote sales," said a producer in North China. They last sold 32t of molybdenum concentrate 45%min at RMB4,600/mtu (USD30/lb Mo) this Monday. They quote RMB4,500/mtu (USD29.3/lb Mo) and could accept RMB4,450/mtu (USD29/lb Mo) for the moment. However, they refused to sell at any prices below RMB5,000/mtu (USD32.6/lb Mo) just one week before. Considering that most buyers prefer to watch the market and downstream molybdenum market prices couldn't offer any effective support now, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would drop below RMB4,300/mtu (USD28/lb Mo) in the coming week.
With an annual production capacity of 7,000t, they produced nearly 3,200t in 2022 and about 400t so far this year. They expect to produce around 200t this month, almost the same as February, holding around 150t of inventories for the moment, up by about 50t from late last month.
"One major producer in Jiangxi just sold 96t of molybdenum concentrate 45%min at around RMB4,370/mtu (USD28.5/lb Mo) EXW D/P this Tuesday, and our regular clients all prefer to watch the market now," said a producer in South China. In order to promote sales, they could accept RMB4,450/mtu (USD29/lb Mo) for the moment. They last sold 32t of molybdenum concentrate 45%min at RMB4,980/mtu (USD32.5/lb Mo) about one week ago. Considering that inquiries in spot market stay rare and they face increasing inventory pressure for the moment, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would keep dropping in the following week.
With an annual production capacity of 3,600t, the producer produced around 1,450t in 2022 and about 240t in the first two months of 2023. They expect to produce about 120t this month, almost the same volume as last month. They have about 60t of stocks for the moment, up by about 60t MoM.
"Major steel mills' ferromolybdenum 60%min bidding price we inquired dropped to the latest around RMB294,500/t (USD70.5/kg Mo) delivered D/A and traders only sell at no more than RMB290,000/t (USD69.5/kg Mo) delivered D/P now, so we have to drop our molybdenum concentrate 45%min price accordingly to promote sales," said a producer in North China. They last sold 32t of molybdenum concentrate 45%min at RMB4,600/mtu (USD30/lb Mo) this Monday. They quote RMB4,500/mtu (USD29.3/lb Mo) and could accept RMB4,450/mtu (USD29/lb Mo) for the moment. However, they refused to sell at any prices below RMB5,000/mtu (USD32.6/lb Mo) just one week before. Considering that most buyers prefer to watch the market and downstream molybdenum market prices couldn't offer any effective support now, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would drop below RMB4,300/mtu (USD28/lb Mo) in the coming week.
With an annual production capacity of 7,000t, they produced nearly 3,200t in 2022 and about 400t so far this year. They expect to produce around 200t this month, almost the same as February, holding around 150t of inventories for the moment, up by about 50t from late last month.
"One major producer in Jiangxi just sold 96t of molybdenum concentrate 45%min at around RMB4,370/mtu (USD28.5/lb Mo) EXW D/P this Tuesday, and our regular clients all prefer to watch the market now," said a producer in South China. In order to promote sales, they could accept RMB4,450/mtu (USD29/lb Mo) for the moment. They last sold 32t of molybdenum concentrate 45%min at RMB4,980/mtu (USD32.5/lb Mo) about one week ago. Considering that inquiries in spot market stay rare and they face increasing inventory pressure for the moment, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would keep dropping in the following week.
With an annual production capacity of 3,600t, the producer produced around 1,450t in 2022 and about 240t in the first two months of 2023. They expect to produce about 120t this month, almost the same volume as last month. They have about 60t of stocks for the moment, up by about 60t MoM.
