Chinese ferromolybdenum prices keep slumping
2023-03-27 08:13:17 [Print]
BEIJING (Asian Metal) 27 Mar 23 - Due to lack of orders from terminal users, Chinese ferromolybdenum 60%min market lost its confidence totally and more and more producers chose to clear their inventory as soon as possible during the past week. Currently, the mainstream prices of Chinese ferromolybdenum 60%min stand at RMB230,000-232,000/t (USD56.2-56.7/kg Mo) EXW D/P, down by RMB34,000/t (USD8.3/kg Mo) from early last week. Considering that raw material prices also moved down accordingly and the negative market mentality continues, insiders believe that the mainstream prices of Chinese ferromolybdenum 60%min would keep slumping in the coming week.
"Our steel mill clients halved their monthly consumption and we face increasing inventory pressure now. In order to promote sales, we could accept RMB240,000/t (USD58.6/kg Mo) delivered D/P for the moment," said a producer in Northeast China. They last sold 20t of ferromolybdenum 60%min at RMB263,000/t (USD64.2/kg Mo) EXW D/P early last week. However, no any clients could like to purchase at any prices above RMB230,000/t (USD56.2/kg Mo) for the moment. Prices of molybdenum concentrate 45%min they inquired dropped by around RMB500/mtu (USD3.3/lb Mo) during the past week to the latest around RMB3,500/mtu (USD23.3/lb Mo). In view of the slumping raw material prices and rare inquiries in spot market, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would drop below RMB200,000/t (USD48.8/kg Mo) in the coming week.
With a production capacity of 6,000tpy, they produced about 2,600t in 2022 and about 300t so far this year. They expect to produce around 50t in March, down by about 50t from last month, holding around 80t of stocks for the moment, up by about 30t MoM.
"We halved our monthly production but still faced increasing inventory pressure. According to the feedback of our major clients, we could at most close deal at around RMB230,000/t (USD56.2/kg Mo) EXW D/P now," said another producer in Northeast China. They just sold 20t of ferromolybdenum 60%min at this price level late last week. However, buyers could still accept around RMB265,000/t (USD64.7/kg Mo) just one week ago. Considering that most buyers prefer to watch the market and they could hardly clear their inventory, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would drop by at least RMB30,000/t (USD7.3/kg Mo) in the following week.
With an annual production capacity of 18,000t, they produced about 9,500t in 2022 and about 1,400t in the first two months of 2023. They expect to produce about 400t this month, down by about 200t from February due to the reducing demand from terminal users. They have around 150t of stocks for the moment, up by about 50t MoM.
"Our steel mill clients halved their monthly consumption and we face increasing inventory pressure now. In order to promote sales, we could accept RMB240,000/t (USD58.6/kg Mo) delivered D/P for the moment," said a producer in Northeast China. They last sold 20t of ferromolybdenum 60%min at RMB263,000/t (USD64.2/kg Mo) EXW D/P early last week. However, no any clients could like to purchase at any prices above RMB230,000/t (USD56.2/kg Mo) for the moment. Prices of molybdenum concentrate 45%min they inquired dropped by around RMB500/mtu (USD3.3/lb Mo) during the past week to the latest around RMB3,500/mtu (USD23.3/lb Mo). In view of the slumping raw material prices and rare inquiries in spot market, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would drop below RMB200,000/t (USD48.8/kg Mo) in the coming week.
With a production capacity of 6,000tpy, they produced about 2,600t in 2022 and about 300t so far this year. They expect to produce around 50t in March, down by about 50t from last month, holding around 80t of stocks for the moment, up by about 30t MoM.
"We halved our monthly production but still faced increasing inventory pressure. According to the feedback of our major clients, we could at most close deal at around RMB230,000/t (USD56.2/kg Mo) EXW D/P now," said another producer in Northeast China. They just sold 20t of ferromolybdenum 60%min at this price level late last week. However, buyers could still accept around RMB265,000/t (USD64.7/kg Mo) just one week ago. Considering that most buyers prefer to watch the market and they could hardly clear their inventory, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would drop by at least RMB30,000/t (USD7.3/kg Mo) in the following week.
With an annual production capacity of 18,000t, they produced about 9,500t in 2022 and about 1,400t in the first two months of 2023. They expect to produce about 400t this month, down by about 200t from February due to the reducing demand from terminal users. They have around 150t of stocks for the moment, up by about 50t MoM.
