Chinese Molybdenum Price - October 20, 2023

This week, Chinese molybdenum price initially saw a significant decline, followed by stabilization, and was influenced by various uncertainties. Traders held somewhat differing attitudes, particularly as molybdenum raw material prices showed signs of rebounding towards the end of the week, while molybdenum chemical product prices remained sluggish.

To provide more context, at the beginning of the week, the domestic molybdenum market continued the sharp decline from the previous week, mainly due to the simultaneous decrease in steel demand and prices, as well as the continued drop in international molybdenum prices. This decline was evident in the prices of molybdenum concentrates, which fell from around 3,490 CNY per ton Mo to about 2,980 CNY per ton Mo, and ferro molybdenum prices, which dropped from about 225,000 CNY per ton to around 196,000 CNY per ton. As the week neared its end, in order to mitigate the risk of cost inversion and influenced by the increase in steel demand and prices as well as signs of a bottoming out in international molybdenum prices, molybdenum raw material suppliers adjusted their quotes upward. However, companies dealing with molybdenum chemicals and related products remained cautious.

According to information from China Tungsten Online, the ferro molybdenum prices decreased by around 10,000 CNY per ton compared to the previous week, a 4.44% decrease. The molybdenum concentrate prices fell by around 390 CNY per ton Mo, representing an 11.17% decrease. Sodium molybdate prices dropped by around 11,000 CNY per ton, marking a 7.24% decrease. Ammonium heptamolybdate prices decreased by around 28,000 CNY per ton, an 11.86% decrease. Molybdenum powder prices fell by around 45 CNY per kilogram, indicating a 10.00% decrease. Molybdenum oxide prices decreased by around 390 CNY per ton, marking a 10.83% decrease.

Recently, steel companies that engaged in bidding for molybdenum iron included Fushun Special Steel, Anhui Magang, Hualing Xianggang, Shandong Iron and Steel Group, and Shouguang Juneng Special Steel. Fushun Special Steel bid for 30 tons at a price of 205,000 CNY per ton, while Anhui Magang bid for 60 tons at the same price. Hualing Xianggang bid for 60 tons at a price of 200,000 CNY per ton, with delivery before October 25.

On the news front, data from the China Iron and Steel Industry Association showed that in early October, social inventories of steel in 21 cities for the top 5 categories of steel products reached 9.24 million tons. This represents a 3.1% increase compared to the previous month, a 22.9% increase since the beginning of the year, and a 2.3% increase compared to the same period last year. Regional inventory changes included a 6.3% increase in Eastern China, a 3.5% increase in Southern China, a 6.6% increase in Central China, a 2.1% increase in Northwestern China, and a 1.1% increase in Northern China, while inventory decreased by 2.0% in Southwest China and 2.6% in Northeast China.

Prices of molybdenum products on October 20, 2023

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