China Molybdenum Market – August 31, 2023

The overall China molybdenum market is leaning towards weakness, as a result of the interplay between various bullish and bearish factors. Amidst this environment, the confidence of many suppliers in maintaining stable prices has slightly weakened. 

This is particularly evident in the prices of molybdenum concentrate, ferro molybdenum, and molybdenum oxide, which have each experienced a decline of around 40 yuan/tonne Mo, 3,000 yuan/tonne, and 30 yuan/tonne Mo, respectively.

Positive factors include: Firstly, the impact of frequent extreme weather conditions and stricter environmental policies has led to reduced production among certain molybdenum manufacturers. Additionally, the combination of a relatively high number of standing orders and limited imports of raw molybdenum materials in China has made it more challenging to increase the supply of spot goods in the market. Secondly, the ongoing transition towards the end of the month and the upcoming "Golden September" period has heightened consumption enthusiasm among certain steel companies.

Negative factors include: Firstly, due to the current higher molybdenum = prices and constrained liquidity, purchasers are primarily maintaining rigid demand. Secondly, the significant decrease in international prices of molybdenum oxide and European ferromolybdenum has to some extent weakened the market's confidence in supporting molybdenum = prices domestically.

In terms of news: According to data from the China Iron and Steel Industry Association, in July 2023, the production of medium and thick steel plates was 6.26 million tons, indicating a year-on-year decrease of 1.4%. The production of hot-rolled continuous rolling mills was 16.22 million tons, representing a year-on-year increase of 5.5%. Similarly, the production of cold-rolled continuous rolling mills was 6.54 million tons, marking a year-on-year increase of 5.5%.

Prices of molybdenum products on August 31, 2023

Picture of molybdenum electrode 

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