Molybdenum News Center

Molybdenum Concentrate Price Increase by Limited Production, Concept Stocks Rise in Early Trading

Some mines to stop production and other factors driving since last December, molybdenum concentrate prices rose 18%, and promoted downstream molybdenum products such as molybdenum-ferro prices upward. Related manufacturers said that the current price is still lower than the cost line which caused most molybdenum mine shut down, is not likely to resume production within a short time. But it plays a supporting role for the prices. The industry is expected, the supply-side reforms capacity to integrate, as well as driven by tight market supply, the whole industry tend to increase price of molybdenum and the intentions is clear, so the whole molybdenum chain t prices is a continued upside.

Molybdenum concentrate goes up, mainly due to ore production and sell mentality driven. Last November, the molybdenum market prices dip slightly, especially early in the tender price is finalized. The majority of the purchase price of ferro-molybdenum dropped to around 50,500 RMB / ton and the market retail price by the tender influence, gradually approaching cash 50,000 RMB / ton. Near the end of the month, the majority of mining limit selling, market liquidity tight supply, downstream portion of molybdenum ferro factory and other enterprises along with a slight increase in quotes. At the beginning of last December, due to shortage of raw materials, mining price increases, a strong rebound in the molybdenum market, many large mining maintenance, and supply shortage situation has been difficult to alleviate. Besides, downstream market is active about inquiry, the market turnover increased. In mainstream offer, more than 45% of the conventional grade molybdenum concentrates the end of last December the mainstream offer was about 730 RMB -740 RMB / mtu. On the other hand, molybdenum oxide mainstream offer was about 810RMB -830 RMB /mtu.

Since January this year, the molybdenum market is stable, downstream molybdenum and chemical plant has limited to access high quoted offer, but the downstream tentative inquiries have increased. With a number of large factories have raised ferro-molybdenum offer acceptance to 58,000 RMB / ton, factory reluctant to sell become more and more increased. 6^th, # 60 ferro-molybdenum cash turnover is about 54,500 RMB -5.55 RMB / ton. Low-amplitude prices rose 500 yuan / ton and high amplitude prices rose 500 yuan / ton. Manufacturers reluctant to sell molybdenum concentrate, so the transaction prices have risen. Mine raise again offer, conventional grade molybdenum concentrate offer 730 RMB -750 RMB /mtu, up 10 RMB / mtu. Molybdenum ore supply is still tight, the downstream chemical molybdenum, ammonium molybdate manufacturers offer also appeared with inflation, gradually improved turnover. With the increase of the downstream acceptance, molybdenum mines may continue to price adjustment. Currently molybdenum price is still lower than the cost of most mines to stop production lines, is not likely to resume production within a short time.

Internationally molybdenum market, shortage of raw materials, but the market inquiries are increase and molybdenum prices is going up. The US economy has improved, molybdenum market operations willingness increased, and large-scale molybdenum mine production also eased the supply of raw materials. The recent tight supply of raw materials increased procurement initiative, so the recent turnover is increase, concentrated demand, the market continued rising, US molybdenum oxide price approaching 5.5 $ / lb, molybdenum-ferro approaching 6.5$ / lb.

Agencies believe that molybdenum market prices will continue to gradually picking up, because the price was supported by the upstream production of molybdenum concentrate limit selling and tight supply of market. In addition, the major market prices of downstream ferro-molybdenum prices increase also provide a supporting role.

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