Chinese Molybdenum Market - August 2, 2024

The Chinese molybdenum market continues to exhibit a weak downward trend, with molybdenum concentrate and ferromolybdenum prices dropping by 20 CNY/ton and approximately 1,000 CNY/ton, respectively. Under these circumstances, traders are mostly adopting a cautious wait-and-see approach, resulting in a slow increase in market orders.

From a positive perspective, several factors contribute to this situation:

1.High temperatures, weakened downstream demand, and declining international molybdenum prices have led some molybdenum mining companies to reduce production.

2.To minimize the risk of cost-benefit inversion, some intermediate smelters have proactively cut production. Combined with limited ferromolybdenum imports, the market supply of ferromolybdenum spot goods remains tight.

3.End customers continue to make necessary purchases based on their immediate needs.

On the downside, the weak international molybdenum market is unfavorable for the domestic molybdenum market's recovery. Additionally, steel companies are exerting significant downward pressure on prices, which has undermined the confidence of ferromolybdenum holders to maintain stable prices.

According to information from the China Iron and Steel Association, as of mid-July 2024, the steel inventory of key steel enterprises was 16.3021 million tons, an increase of 899,600 tons (5.84%) compared to early July. This is a decrease of 123,700 tons (0.75%) compared to the same period last month and an increase of 633,700 tons (4.04%) compared to the same period last year. Compared to the same period the year before last, it is a decrease of 2.7292 million tons (14.34%).

Prices of molybdenum products on August 2, 2024

Picture of MoSi2 heating elements 

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