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

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