Chinese ferromolybdenum prices slump
2023-04-13 08:08:08 [Print]
BEIJING (Asian Metal) 13 Apr 23 - In view of the huge market inventory pressure and slumping raw material prices, Chinese ferromolybdenum market mentality kept negative during the past week. Currently, the mainstream prices of Chinese ferromolybdenum 60%min stand at RMB185,000-187,000/t (USD45.2-45.7/kg Mo) EXW D/P, down by RMB18,000/t (USD4.4/kg Mo) from late last week. Considering that the negative market mentality continues, insiders predict that the mainstream prices of Chinese ferromolybdenum 60%min would drop further in the coming week.
"No buyers would like to add inventory for the moment just because of the slumping raw material prices. In order to clear our inventory as soon as possible, we could accept RMB185,000/t (USD45.2/kg Mo) EXW D/P now," said a producer in Northeast China. They last sold 10t of ferromolybdenum 60%min at RMB192,000/t (USD46.9/kg Mo) this Monday and refused to sell at any prices below RMB205,000/t (USD50.1/kg Mo) just one week ago. Prices of molybdenum concentrate 45%min they inquired dropped to the latest around RMB2,650/mtu (USD17.6/lb Mo) EXW D/P. In view of the dropping raw material prices and increasing inventory pressure, they predict that the mainstream prices of Chinese ferromolybdenum 60%min would drop to around RMB170,000/t (USD41.5/kg Mo) in the following week.
With an annual production capacity of 10,000t, they expect to produce about 100t this month, almost the same volume as last month, holding around 30t of stocks now, up by about 30t MoM.
"We face increasing inventory pressure for the moment and have to drop price to promote sales. For firm bids, we could accept RMB190,000/t (USD46.4/kg Mo) EXW D/P," said another producer in Northeast China. They just sold 10t of ferromolybdenum 60%min at RMB187,000/t (USD45.7/kg Mo) this Wednesday after a hard bargain. They refused to sell at any prices below RMB200,000/t (USD48.8/kg Mo) late last week. Considering that most buyers prefer to watch the market and the rare inquiries in spot market continues, insiders expect that the mainstream prices of Chinese ferromolybdenum 60%min would decline below RMB175,000/t (USD42.7/kg Mo) in the coming week.
With a production capacity of 12,000tpy, they produce about 6050t in 2022 and about 800t in the first three months of 2023. They expect to produce about 200t this month, almost the same as last month. They have about 100t of inventories for the moment, unchanged MoM.
"No buyers would like to add inventory for the moment just because of the slumping raw material prices. In order to clear our inventory as soon as possible, we could accept RMB185,000/t (USD45.2/kg Mo) EXW D/P now," said a producer in Northeast China. They last sold 10t of ferromolybdenum 60%min at RMB192,000/t (USD46.9/kg Mo) this Monday and refused to sell at any prices below RMB205,000/t (USD50.1/kg Mo) just one week ago. Prices of molybdenum concentrate 45%min they inquired dropped to the latest around RMB2,650/mtu (USD17.6/lb Mo) EXW D/P. In view of the dropping raw material prices and increasing inventory pressure, they predict that the mainstream prices of Chinese ferromolybdenum 60%min would drop to around RMB170,000/t (USD41.5/kg Mo) in the following week.
With an annual production capacity of 10,000t, they expect to produce about 100t this month, almost the same volume as last month, holding around 30t of stocks now, up by about 30t MoM.
"We face increasing inventory pressure for the moment and have to drop price to promote sales. For firm bids, we could accept RMB190,000/t (USD46.4/kg Mo) EXW D/P," said another producer in Northeast China. They just sold 10t of ferromolybdenum 60%min at RMB187,000/t (USD45.7/kg Mo) this Wednesday after a hard bargain. They refused to sell at any prices below RMB200,000/t (USD48.8/kg Mo) late last week. Considering that most buyers prefer to watch the market and the rare inquiries in spot market continues, insiders expect that the mainstream prices of Chinese ferromolybdenum 60%min would decline below RMB175,000/t (USD42.7/kg Mo) in the coming week.
With a production capacity of 12,000tpy, they produce about 6050t in 2022 and about 800t in the first three months of 2023. They expect to produce about 200t this month, almost the same as last month. They have about 100t of inventories for the moment, unchanged MoM.
