Chinese molybdenum concentrate market sees growing inventory pressure
2023-04-05 08:53:17 [Print]
BEIJING (Asian Metal) 5 Apr 23 - As terminal users reduced consumption, Chinese molybdenum concentrate producers kept increasing their inventory during the past month and the latest inventory volume increased to around 20,000t historic high level. Currently, the mainstream prices of Chinese concentrate 45%min stand at RMB3,030-3,050/mtu (USD20.1-20.3/lb Mo) EXW D/P, down by around RMB180/mtu (USD1.2/lb Mo) from late last week. Considering that most producers prefer to reduce their inventory as soon as possible and buyers could easily find enough goods in spot market, insiders believe that the mainstream prices of Chinese molybdenum concentrate 45%min would keep moving down in the coming week.
"We couldn't afford the increasing inventory pressure anymore and have to drop prices to reduce our stocks. For firm bids of molybdenum concentrate 450%min, we could accept RMB3,050/mtu (USD20.3/lb Mo) EXW D/P now," said a producer in North China. They just sold 430t of molybdenum concentrate 50%min at this price level this Tuesday and still face huge inventory pressure now. However, they refused to sell at any prices below RMB3,250/mtu (USD21.6/lb Mo) just one week ago. Considering that terminal users still need long time to consume the current high inventory, they have no confidence for price rise in April, and they predict that the mainstream prices of Chinese molybdenum concentrate 50%min would drop to around RMB2,900/mtu (USD19.3/lb Mo) in the coming week.
With an annual production capacity of 18,000t, they produced about 8,800t in 2022 and about 2,500t so far this year. They expect to sell about 800t this month, almost the same as last month. They have around 500t of stocks now, up by about 200t MoM.
"We face increasing inventory pressure for the moment. In order to promote sales, we could accept RMB3,030/mtu (USD20.1/lb Mo) EXW D/P for molybdenum concentrate 45%min. However, buyers keep reluctant to purchase now," said another producer in North China. They last sold 32t of molybdenum concentrate 45%min at RMB3,100/mtu (USD20.6/lb Mo) this Monday. They called their major clients this Tuesday, but buyers only want to buy at no more than RMB2,970/mtu (USD19.7/lb Mo). In view of the growing inventory and dropping ferromolybdenum bidding prices, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would below RMB3,000/mtu (USD19.9/lb Mo) in the coming week.
With an annual production capacity of 2400t, the produced 440t for eight months in 2022 and about 140t for two months so far this year. They expect to produce about 100t this month, almost the same volume as March, holding around 60t of stocks for the moment, unchanged MoM.
"We couldn't afford the increasing inventory pressure anymore and have to drop prices to reduce our stocks. For firm bids of molybdenum concentrate 450%min, we could accept RMB3,050/mtu (USD20.3/lb Mo) EXW D/P now," said a producer in North China. They just sold 430t of molybdenum concentrate 50%min at this price level this Tuesday and still face huge inventory pressure now. However, they refused to sell at any prices below RMB3,250/mtu (USD21.6/lb Mo) just one week ago. Considering that terminal users still need long time to consume the current high inventory, they have no confidence for price rise in April, and they predict that the mainstream prices of Chinese molybdenum concentrate 50%min would drop to around RMB2,900/mtu (USD19.3/lb Mo) in the coming week.
With an annual production capacity of 18,000t, they produced about 8,800t in 2022 and about 2,500t so far this year. They expect to sell about 800t this month, almost the same as last month. They have around 500t of stocks now, up by about 200t MoM.
"We face increasing inventory pressure for the moment. In order to promote sales, we could accept RMB3,030/mtu (USD20.1/lb Mo) EXW D/P for molybdenum concentrate 45%min. However, buyers keep reluctant to purchase now," said another producer in North China. They last sold 32t of molybdenum concentrate 45%min at RMB3,100/mtu (USD20.6/lb Mo) this Monday. They called their major clients this Tuesday, but buyers only want to buy at no more than RMB2,970/mtu (USD19.7/lb Mo). In view of the growing inventory and dropping ferromolybdenum bidding prices, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would below RMB3,000/mtu (USD19.9/lb Mo) in the coming week.
With an annual production capacity of 2400t, the produced 440t for eight months in 2022 and about 140t for two months so far this year. They expect to produce about 100t this month, almost the same volume as March, holding around 60t of stocks for the moment, unchanged MoM.
