Chinese ferromolybdenum prices keep moving down
2023-03-21 08:26:08 [Print]
BEIJING (Asian Metal) 21 Mar 23 - Due to soft demand from terminal users and dropping raw material prices during the past week, Chinese ferromolybdenum 60%min market lost its confidence and too many producers chose to drop their prices to reduce inventory. Currently, the mainstream prices of Chinese ferromolybdenum 60%min stand at RMB264,000-266,000/t (USD63.2-63.7/kg Mo) EXW D/P, down by RMB10,000/t (USD2.4/kg Mo) from late last week. Considering that the negative market mentality continues, insiders believe that the mainstream prices of Chinese ferromolybdenum 60%min would keep moving down in the coming week.
"Prices of molybdenum concentrate 45%min we inquired dropped from RMB4,250/mtu (USD27.7/lb Mo) EXW D/P to RMB3,950/mtu (USD29/lb Mo) within one day, which seriously reduced our confidence. In order to promote sales, we could accept RMB265,000/t (USD63.5/kg Mo) EXW D/P for firm bids now," said a producer in Northeast China. They last sold 20t of ferromolybdenum 60%min at RMB277,000/t (USD66.3/kg Mo) delivered D/A 180 days late last week. Considering that inquiries from steel mills stay rare for the moment, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would drop below RMB250,000/t (USD59.9/kg Mo) EXW D/P in the coming week.
With an annual production capacity of 6,000t, they produced around 2,300t in 2022 and about 300t so far in 2023. They expect to produce about 80t this month, almost halved from last month due to the soft demand from regular clients. They have about 30t of regular stocks for the moment, unchanged MoM.
"No buyers would like to build inventory for the moment and we face growing inventory pressure. In order to clear our stock as soon as possible, we could accept RMB264,000/t (USD63.2/kg Mo) EXW D/P now," said another producer in Northeast China. They last sold 20t of ferromolybdenum 60%min at RMB274,000/t (USD65.6/kg Mo) delivered D/A 180 days late last week. Prices of molybdenum concentrate 45%min they inquired dropped to the latest around RMB3,950/mtu (USD25.7/lb Mo) EXW D/P. Considering that raw material prices couldn't offer any effective support for the moment, they predict that the mainstream prices of Chinese ferromolybdenum 60%min would drop by at least RMB15,000/t (USD3.6/kg Mo) in the following week.
With an annual production capacity of 6,000t, they produced about 3,150t in 2022 and about 700t so far this year. They expect to produce about 250t this month, down by about 100t from February due to lack of orders, holding around 60t of inventories for the moment, up by about 10t MoM.
"Prices of molybdenum concentrate 45%min we inquired dropped from RMB4,250/mtu (USD27.7/lb Mo) EXW D/P to RMB3,950/mtu (USD29/lb Mo) within one day, which seriously reduced our confidence. In order to promote sales, we could accept RMB265,000/t (USD63.5/kg Mo) EXW D/P for firm bids now," said a producer in Northeast China. They last sold 20t of ferromolybdenum 60%min at RMB277,000/t (USD66.3/kg Mo) delivered D/A 180 days late last week. Considering that inquiries from steel mills stay rare for the moment, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would drop below RMB250,000/t (USD59.9/kg Mo) EXW D/P in the coming week.
With an annual production capacity of 6,000t, they produced around 2,300t in 2022 and about 300t so far in 2023. They expect to produce about 80t this month, almost halved from last month due to the soft demand from regular clients. They have about 30t of regular stocks for the moment, unchanged MoM.
"No buyers would like to build inventory for the moment and we face growing inventory pressure. In order to clear our stock as soon as possible, we could accept RMB264,000/t (USD63.2/kg Mo) EXW D/P now," said another producer in Northeast China. They last sold 20t of ferromolybdenum 60%min at RMB274,000/t (USD65.6/kg Mo) delivered D/A 180 days late last week. Prices of molybdenum concentrate 45%min they inquired dropped to the latest around RMB3,950/mtu (USD25.7/lb Mo) EXW D/P. Considering that raw material prices couldn't offer any effective support for the moment, they predict that the mainstream prices of Chinese ferromolybdenum 60%min would drop by at least RMB15,000/t (USD3.6/kg Mo) in the following week.
With an annual production capacity of 6,000t, they produced about 3,150t in 2022 and about 700t so far this year. They expect to produce about 250t this month, down by about 100t from February due to lack of orders, holding around 60t of inventories for the moment, up by about 10t MoM.
