Chinese ferromolybdenum market saw growing inventory
2023-04-04 07:56:41 [Print]
BEIJING (Asian Metal) 4 Apr 23 - Due to the soft demand from terminal users, Chinese ferromolybdenum market saw sufficient supply. Though most producers reduced production and some even closed down, the market inventory still kept increasing during the past week. Currently, the mainstream prices of Chinese ferromolybdenum 60%min stand at RMB205,000-207,000/t (USD50.1-50.6/kg Mo) EXW D/P, down by RMB1,000/t (USD0.2/kg Mo) from late last week. Considering that market still needs time to consume inventory, insiders believe that the mainstream prices of Chinese ferromolybdenum 60%min would stay weak in the coming week.
"We halved our monthly production in March but still face increasing inventory now. In order to promote sales, we could accept RMB207,000/t (USD50.6/kg Mo) EXW D/P now," said a producer in Northeast China. They quoted RMB210,000/t (USD51.3/kg Mo) during the past week and last sold 10t at RMB207,000/t (USD50.6/kg Mo) late last week. Inquiries from trader turned active from late last week, but buyers only wanted to buy small volume with immediate shipment due to lack of confidence for price rise in April. Considering that terminal users still need time to consume the current market inventory, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would stay weak at around RMB205,000/t (USD50.1/kg Mo) in the following week.
With an annual production capacity of 6,000t, they produced about 2,600t in 2022 and about 550t so far this year. They produced about 100t in March, down by about 100t from February. They have around 50t of stocks now, up by about 50t MoM.
"In order to reduce our increasing inventory pressure, we would like to sell at RMB206,000/t (USD50.3/kg Mo) EXW D/P for the moment," said another producer in Northeast China. They last sold 10t of ferromolybdenum 60%min at RMB210,000/t (USD51.3/kg Mo) middle last week. Their major clients could at most accept RMB205,000/t (USD50.1/kg Mo) for the moment and some steel mills only wanted to buy at around RMB195,000/t (USD47.6/kg Mo). Prices of molybdenum concentrate 45%min they inquired dropped to the latest around RMB2,950/mtu (USD19.6/lb Mo) EXW D/P. In view of the growing inventory and dropping raw material prices, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would keep soft in the coming week.
With an annual production capacity of 3,600t, they produced about 1,260t in 2022 and about 300t in the first three months of 2023. They expect to produce about 100t this month, the same as March, holding around 30t of stocks for the moment, up by about 30t MoM.
"We halved our monthly production in March but still face increasing inventory now. In order to promote sales, we could accept RMB207,000/t (USD50.6/kg Mo) EXW D/P now," said a producer in Northeast China. They quoted RMB210,000/t (USD51.3/kg Mo) during the past week and last sold 10t at RMB207,000/t (USD50.6/kg Mo) late last week. Inquiries from trader turned active from late last week, but buyers only wanted to buy small volume with immediate shipment due to lack of confidence for price rise in April. Considering that terminal users still need time to consume the current market inventory, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would stay weak at around RMB205,000/t (USD50.1/kg Mo) in the following week.
With an annual production capacity of 6,000t, they produced about 2,600t in 2022 and about 550t so far this year. They produced about 100t in March, down by about 100t from February. They have around 50t of stocks now, up by about 50t MoM.
"In order to reduce our increasing inventory pressure, we would like to sell at RMB206,000/t (USD50.3/kg Mo) EXW D/P for the moment," said another producer in Northeast China. They last sold 10t of ferromolybdenum 60%min at RMB210,000/t (USD51.3/kg Mo) middle last week. Their major clients could at most accept RMB205,000/t (USD50.1/kg Mo) for the moment and some steel mills only wanted to buy at around RMB195,000/t (USD47.6/kg Mo). Prices of molybdenum concentrate 45%min they inquired dropped to the latest around RMB2,950/mtu (USD19.6/lb Mo) EXW D/P. In view of the growing inventory and dropping raw material prices, they expect that the mainstream prices of Chinese ferromolybdenum 60%min would keep soft in the coming week.
With an annual production capacity of 3,600t, they produced about 1,260t in 2022 and about 300t in the first three months of 2023. They expect to produce about 100t this month, the same as March, holding around 30t of stocks for the moment, up by about 30t MoM.
