Supply and Demand Game In The Molybdenum Market Is Fierce And Price Adjustment Is Imminent

Recently, the price center of gravity of the international molybdenum raw material market has moved up, and the quotation of molybdenum oxide is between US$22.15- US$22.2/pound of molybdenum. However, the domestic molybdenum raw material market in China has continued to consolidate, and the price of molybdenum concentrate has remained stable for the time being. Due to the reluctance of holders to sell at low prices and cautious waiting by buyers, the transaction situation in the molybdenum concentrate market is deadlocked, and the price of local bargaining transactions in bulk is around USD510/ton. At present, the market quotation of 45-50% grade molybdenum concentrate is USD514-USD518/ton.

Yesterday, two steel mills in Shanxi and Shandong regions conducted ferromolybdenum bidding, with acceptance prices of USD32,800 and cash USD33,150 respectively. Today, the ferromolybdenum bidding price of a steel mill in Zhejiang was announced, and the acceptance price was USD32,780. The opening price difference of steel mills has widened, and the supply and demand game in the ferromolybdenum market has become more intense. The manufacturer’s quotation in the bulk market remains stable, but the transaction situation continues to be light, and the transaction is cautious and deadlocked. At present, the mainstream quotation of 60 ferromolybdenum market is around USD33150/ton.

The raw material market is currently in a stalemate and wait-and-see state, and the price of molybdenum concentrate is temporarily stable. The price difference between steel and ferro-molybdenum has widened, and the supply and demand game in the ferro-molybdenum market has intensified. The manufacturer’s quotation remains stable, and the bulk transaction situation is light. It is expected that in the short term, the molybdenum market will continue to consolidate, and the molybdenum price will be stable with small adjustments.