Chinese Molybdenum Market Stabilizes on Weak Demand

The latest price of ammonium molybdate and ammonium heptamolvbdate falls slightly while molybdenum powder price remained unchanged in Chinese molybdenum market. Disparity in supply and demand at each end of the industry chain affects the dissension of businesses and central enterprises operate mainly replying on costs.

Molybdenum concentrate traders are more active in inquiry, which increases market trading. While miners with good mentality keep firm offers. In the ferro molybdenum market, prices of steel biddings change sharply, but still are weak. Risks of cost overhang of manufacturers weaken trading willingness. Weak demand makes businesses selling their products at low prices, so product prices in the molybdenum chemical and product market decline slightly.

Prices of molybdenum products on Jun. 07, 2018

Picture of FeMo powder

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Different Views Toward Chinese Molybdenum Market

Insiders hold different views toward Chinese molybdenum market: stabilization or decline, according to research from ChinaTungsten Online.

Some insiders are more bearish on short-term molybdenum market that the fall in ferro molybdenum transaction prices in return presses molybdenum concentrate price. The following keys are the main reasons:

First, affected by the continuous drop in international molybdenum price, traders lower their expectations for ferro molybdenum price, resulting in actual transaction prices below manufacturers' offers.

Second, part of manufacturers may cut product profits for more sales because they need capital repatriation at the end of the month.

Third, several steel mills are understood to postpone ferro molybdenum tender on purpose in order to put press on ferro molybdenum enterprises.

Others forecast that the market will maintain stability in the short term. They think that molybdenum concentrate price will remain unchanged, supporting downstream molybdenum products and restricting enterprises to sell at low prices. The reasons are as following:

First, spot molybdenum concentrates are still tight and major molybdenum mines face little pressure from stocks and funds. Therefore, molybdenum raw material market will stabilize.

Second, molybdenum concentrate price has been exceeded RMB 1,600.t since the Spring Festival and the market without low-cost spot goods will support market price.

Third, although international molybdenum price declines, but with the closed import and export channel, the supply and demand in China will not be affected.

On the whole, the later market trend is not only depending on the mentality of insiders, but also market supply and demand. How steel biddings will perform after the drop of international molybdenum price needs to be the focus of the market.

Prices of molybdenum products on May 25, 2018

Picture of molybdenum powder

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Heavy Wait-and-See Atmosphere in Chinese Molybdenum Market

International molybdenum oxide price rises slightly, which do not active the market in China. At present, molybdenum smelting factories, chemical and product enterprises keep high product prices owing to high production costs. The average price in Chinese molybdenum mines hovers around RMB 1,640/t and mainstream transaction prices of molybdenum concentrate are RMB 1,630-1,640/t. In the short term, the tightening availability of low-price molybdenum raw materials will continue.

Molybdenum raw material prices and bid prices in steel mills are quite different amid ferromolybdenum manufacturers show cost overhang. Although market quotation ranges between RMB 109,000-111,000/t, buyers operate cautiously. It is hard to conclude deals at the prices. Steel biddings, and then, a vacuum, so some manufacturers start to stop or cut production, the spot goods will decrease.

A now round of environmental protection inspection will be carried out, focusing on Jiangsu, Anhui, Jiangxi, Hunan provinces. Affected by that, output of sodium molybdate and ammonium heptamolybdate declines greatly. But viewing from the performance of molybdenum chemical products transactions, though the production of above products falls as well as the trading volume, supply and demand are in balance.

Trading in Chinese molybdenum market is thin and actual transaction prices are lower than market quotations. Most enterprisers are now delivering their goods, so the offers stabilize temporarily. Demand for downstream deep processing products is not improved amid the price of molybdenum sheet stabilizes and molybdenum rod and wire markets are weak. The current market trend will continue.

Prices of molybdenum products on May 15, 2018

Picture of sodium molybdate

If you have any inquiry of molybdenum products, please feel free to contact us:
Email: sales@chinatungsten.com/sales@xiamentungsten.com
Tel.: +86 592 5129696/+86 592 5129595
Fax: +86 592 5129797

Scan QR code of Chinatungsten Wechat platform to follow up the daily latest price and market of tungsten, molybdenum and rare earth.