Molybdenum Bar Price - October 29, 2020

Molybdenum market quotation in China: molybdenum oxide, ferro molybdenum and molybdenum bar prices are unchanged from the previous trading day with the influence of the second wave of Covid-19, the US election and geopolitical risks. 

From the perspective of negative factors, firstly, market confidence has suffered a great impact due to the recent plunge in both U.S. stocks and crude oil, making it difficult for traders to subside pessimism, and the price of molybdenum chemical products is consolidating at a low level; secondly, the bidding price of steel mills is lower than actual. This is also the reason why it is difficult for holders to update their quotations. Recently, industry players have generally waited patiently for the next move in the market. 

From the perspective of favorable factors, firstly, the environmental protection has not been reduced, which can effectively control the unreasonable mining of molybdenum mining enterprises, thereby reducing the rate of production capacity release to alleviate the imbalance of supply and demand; secondly, because of considerable number of tenders for steel plants from January to October, traders have the motive to enter the market. The industry believes that the total amount of steel molybdenum and iron in October is expected to exceed 8,000 tons.

China’s crude steel output is 781.59 million tons in January-September 2020, an increase of 4.5% over the same period last year. According to industry insiders, the annual crude steel output is expected to exceed 1 billion tons, with a year-on-year growth rate of 3%-5%; It is estimated that steel exports will drop by about 15% throughout the year, and demand for low-priced imports will increase, and imports will increase by about 60%.

Prices of molybdenum products on October 29, 2020

Picture of molybdenum bar 

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