Chinese molybdenum concentrate prices keep going down
2023-04-19 08:21:26 [Print]
BEIJING (Asian Metal) 19 Apr 23 - As most producers enlarged production from late last year due to the relatively good profit, Chinese molybdenum concentrate market sees huge inventory pressure now and the market mentality keeps going down. Currently, the mainstream prices of Chinese molybdenum concentrate 45%min stand at RMB2,580-2,600/mtu (USD17.1-17.3/lb Mo) EXW D/P, down by RMB100/mtu (USD0.7/lb Mo) from late last week. Considering that terminal users still need long time reduce the current sufficient supply, insiders believe that the mainstream prices of Chinese molybdenum concentrate 45%min would god down further in the coming week.
"Buyers could easily find enough goods in spot market as too many producers enlarged production. One major producer in Northeast China dropped their molybdenum concentrate 50%min price to RMB2,600/mtu (USD17.3/lb Mo) EXW D/P to reduce inventory and we had to follow up accordingly," said a producer in South China. They just sold about 64t of molybdenum concentrate 45%min at RMB2,580/mtu (USD17.1/lb Mo) EXW D/P this Monday. However, they refused to sell at any prices below RMB2,680/mtu (USD17.8/lb Mo) last week. Prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB172,000/t (USD41.9/kg Mo) delivered D/P. Considering that downstream market couldn't offer effective support and they face increasing inventory pressure for the moment, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop below RMB2,500/mtu (USD16.6/lb Mo) in the coming week.
With an annual production capacity of 4,800t, they produced about 1,000t in 2022 and about 150t so far this year. They didn't produce in March due to the overhaul and expect to produce about 100t this month. They have about 60t of inventories for the moment, up by about 60t MoM.
"Small producers in Henan enlarged their production a lot and they even didn't stop during the Spring Festival Holidays. However, terminal users' demand didn't grow and even reduced, which made our inventory keep growing. In order to reduce our inventory pressure, we could accept RMB2,600/mtu (USD17.3/lb Mo) EXW D/P now," said a producer in North China. They last sold about 33t of molybdenum concentrate 45%min at RMB2,700/mtu (USD17.9/lb Mo) about one week ago. Considering that most buyers prefer to watch the market and their their huge inventory pressure continues, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop to around RMB2,000/mtu (USD13.3/lb Mo) before May.
With an annual production capacity of 2,400t, they produced about 1,500t in 2022 and about 450t so far this year. They expect to produce about 150t this month, almost the same volume as last month, holding around 60t of stocks for the moment, up by about 60t MoM.
"Buyers could easily find enough goods in spot market as too many producers enlarged production. One major producer in Northeast China dropped their molybdenum concentrate 50%min price to RMB2,600/mtu (USD17.3/lb Mo) EXW D/P to reduce inventory and we had to follow up accordingly," said a producer in South China. They just sold about 64t of molybdenum concentrate 45%min at RMB2,580/mtu (USD17.1/lb Mo) EXW D/P this Monday. However, they refused to sell at any prices below RMB2,680/mtu (USD17.8/lb Mo) last week. Prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB172,000/t (USD41.9/kg Mo) delivered D/P. Considering that downstream market couldn't offer effective support and they face increasing inventory pressure for the moment, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop below RMB2,500/mtu (USD16.6/lb Mo) in the coming week.
With an annual production capacity of 4,800t, they produced about 1,000t in 2022 and about 150t so far this year. They didn't produce in March due to the overhaul and expect to produce about 100t this month. They have about 60t of inventories for the moment, up by about 60t MoM.
"Small producers in Henan enlarged their production a lot and they even didn't stop during the Spring Festival Holidays. However, terminal users' demand didn't grow and even reduced, which made our inventory keep growing. In order to reduce our inventory pressure, we could accept RMB2,600/mtu (USD17.3/lb Mo) EXW D/P now," said a producer in North China. They last sold about 33t of molybdenum concentrate 45%min at RMB2,700/mtu (USD17.9/lb Mo) about one week ago. Considering that most buyers prefer to watch the market and their their huge inventory pressure continues, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop to around RMB2,000/mtu (USD13.3/lb Mo) before May.
With an annual production capacity of 2,400t, they produced about 1,500t in 2022 and about 450t so far this year. They expect to produce about 150t this month, almost the same volume as last month, holding around 60t of stocks for the moment, up by about 60t MoM.
