Chinese molybdenum concentrate prices slump
2023-03-21 08:26:05 [Print]
BEIJING (Asian Metal) 21 Mar 23 - In view of the reducing demand from terminal users, Chinese molybdenum concentrate 45%min market lost its confidence and market mentality turned negative seriously during the past week. Currently, the mainstream prices of Chinese concentrate 45%min stand at RMB3,950-3,970/mtu (USD25.7-25.9/lb Mo) EXW D/P, down by RMB350/mtu (USD2.3/lb Mo) from late last week. Considering that producers all face growing inventory and too many traders prefer to clear their stock as soon as possible, insiders believe that the mainstream prices of Chinese molybdenum concentrate 45%min would slump further in the coming week.
"Buyers could still accept RMB4,250/mtu (USD27.7/lb Mo) EXW D/P late last week, but none would like to purchase at any prices above RMB3,950/mtu (USD25.7/lb Mo) now just because of the dropping ferromolybdenum 60%min bidding prices," said a producer in North China. They last sold 32t of molybdenum concentrate 45%min at RMB4,250/mtu (USD27.7/lb Mo) last Friday. Bidding prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB274,900/t (USD65.8/kg Mo) delivered D/A 180 days. In view of the sufficient supply and dropping ferromolybdenum 60%min prices, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would to around RMB3,500/mtu (USD22.8/lb Mo) in the following week.
With an annual production capacity of 3,600t, they produced about 2,000t in 2022 and about 300t in the first two months of this year. They expect to produce about 120t in March, down by about 30t from last month due to the growing inventory pressure. They have around 200t of stocks for the moment, up by about 50t MoM.
"One major producer in Yunnan just sold 96t of molybdenum concentrate 45%min at RMB3,950/mtu (USD25.7/lb Mo) EXW D/P, which seriously damaged our confidence and we had to follow up to the same price level to promote sales," said another producer in South China. They just sold 32t of molybdenum concentrate 45%min at this price level this Monday. However, they refused to sell at any prices below RMB4,300/mtu (USD28/lb Mo) last week. Considering that too many producers near them face growing inventory pressure for the moment, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop by around RMB500/mtu (USD3.3/lb Mo) in the coming week.
With a production capacity of 4,800tpy, they produced about 4,100t in 2022 and about 300t so far this year. They expect to produce about 400t this month, almost doubled from February, holding around 200t of stocks now, up by around 200t MoM.
"Buyers could still accept RMB4,250/mtu (USD27.7/lb Mo) EXW D/P late last week, but none would like to purchase at any prices above RMB3,950/mtu (USD25.7/lb Mo) now just because of the dropping ferromolybdenum 60%min bidding prices," said a producer in North China. They last sold 32t of molybdenum concentrate 45%min at RMB4,250/mtu (USD27.7/lb Mo) last Friday. Bidding prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB274,900/t (USD65.8/kg Mo) delivered D/A 180 days. In view of the sufficient supply and dropping ferromolybdenum 60%min prices, they expect that the mainstream prices of Chinese molybdenum concentrate 45%min would to around RMB3,500/mtu (USD22.8/lb Mo) in the following week.
With an annual production capacity of 3,600t, they produced about 2,000t in 2022 and about 300t in the first two months of this year. They expect to produce about 120t in March, down by about 30t from last month due to the growing inventory pressure. They have around 200t of stocks for the moment, up by about 50t MoM.
"One major producer in Yunnan just sold 96t of molybdenum concentrate 45%min at RMB3,950/mtu (USD25.7/lb Mo) EXW D/P, which seriously damaged our confidence and we had to follow up to the same price level to promote sales," said another producer in South China. They just sold 32t of molybdenum concentrate 45%min at this price level this Monday. However, they refused to sell at any prices below RMB4,300/mtu (USD28/lb Mo) last week. Considering that too many producers near them face growing inventory pressure for the moment, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop by around RMB500/mtu (USD3.3/lb Mo) in the coming week.
With a production capacity of 4,800tpy, they produced about 4,100t in 2022 and about 300t so far this year. They expect to produce about 400t this month, almost doubled from February, holding around 200t of stocks now, up by around 200t MoM.
