Chinese molybdenum concentrate prices keep declining
2023-04-11 07:43:18 [Print]
BEIJING (Asian Metal) 11 Apr 23 - As market inventory stayed at a historic high level, Chinese molybdenum concentrate market mentality kept negative during the past week. At present, the mainstream prices of Chinese concentrate 45%min stand at RMB2,850-2,870/mtu (USD18.9-19.1/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 to consume the current inventory, insiders believe that the mainstream prices of Chinese molybdenum concentrate 45%min would keep declining in the coming week.
"Terminal users reduced their consumption volume significantly in February and March, so our inventory kept increasing to a historic high level. For firm bids, we could accept RMB2,850/mtu (USD18.9/lb Mo) EXW D/P now," said a producer in North China. They last sold about 33t of molybdenum concentrate 45%min at RMB2,950/mtu (USD19.6/lb Mo) late last week. Prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB195,000/t (USD47.6/kg Mo) EXW D/P. Considering that terminal users couldn't offer any effective support and the sufficient supply in spot market continues, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop to around RMB2,800/mtu (USD18.6/lb Mo) in the coming week.
With an annual production capacity of 9,600t, they produced about 3,150t in 2022 and about 900t in the first three months of 2023. They expect to produce about 300t in March, the same as February, holding around 300t of inventories for the moment, up by about 120t MoM.
"As steel mills reduced ferromolybdenum monthly consumption volume a lot, our regular clients all preferred to watch the market now, which made our inventory pressure kept growing during the past two weeks. In order to promote sales, we could accept RMB2,850/mtu (USD18.9/lb Mo) EXW D/P for the moment," said another producer in North China. They last sold about 33t of molybdenum concentrate 45%min at RMB2,970/mtu (USD19.7/lb Mo) middle last week. Their major clients only want to purchase with the target prices of around RMB2,700/mtu (USD17.9/lb Mo) for the moment. Considering that consumers could easily find enough goods in spot market now, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop to around RMB2,700/mtu (USD17.9/lb Mo) in the following week.
With an annual production capacity of 7,000t, they produced about 3,200t in 2022 and about 600t so far this year. They expect to produce around 200t this month, almost the same as March. They have nearly 180t of stocks now, up by about 80t MoM.
"Terminal users reduced their consumption volume significantly in February and March, so our inventory kept increasing to a historic high level. For firm bids, we could accept RMB2,850/mtu (USD18.9/lb Mo) EXW D/P now," said a producer in North China. They last sold about 33t of molybdenum concentrate 45%min at RMB2,950/mtu (USD19.6/lb Mo) late last week. Prices of ferromolybdenum 60%min they inquired dropped to the latest around RMB195,000/t (USD47.6/kg Mo) EXW D/P. Considering that terminal users couldn't offer any effective support and the sufficient supply in spot market continues, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop to around RMB2,800/mtu (USD18.6/lb Mo) in the coming week.
With an annual production capacity of 9,600t, they produced about 3,150t in 2022 and about 900t in the first three months of 2023. They expect to produce about 300t in March, the same as February, holding around 300t of inventories for the moment, up by about 120t MoM.
"As steel mills reduced ferromolybdenum monthly consumption volume a lot, our regular clients all preferred to watch the market now, which made our inventory pressure kept growing during the past two weeks. In order to promote sales, we could accept RMB2,850/mtu (USD18.9/lb Mo) EXW D/P for the moment," said another producer in North China. They last sold about 33t of molybdenum concentrate 45%min at RMB2,970/mtu (USD19.7/lb Mo) middle last week. Their major clients only want to purchase with the target prices of around RMB2,700/mtu (USD17.9/lb Mo) for the moment. Considering that consumers could easily find enough goods in spot market now, they predict that the mainstream prices of Chinese molybdenum concentrate 45%min would drop to around RMB2,700/mtu (USD17.9/lb Mo) in the following week.
With an annual production capacity of 7,000t, they produced about 3,200t in 2022 and about 600t so far this year. They expect to produce around 200t this month, almost the same as March. They have nearly 180t of stocks now, up by about 80t MoM.
