Molybdenum News Center

Chinese Molybdenum Enterprises Jointly Proposed to Continue Limiting Production to Promote Molybdenum Market

In order to promote the molybdenum market, Chinese domestic nine large-scale molybdenum mine enterprise recently issued a joint proposal, decided on the basis of reduced 9.18% molybdenum concentrate production in 2015, in 2016 continues to cut the production by 10%, and encouraged other molybdenum enterprises to actively participate national reserves of molybdenum products, reducing sales, so that molybdenum concentrate is short supply in market and the raw material price will increase.

At the present, China's nonferrous metals industry situation is not good, especially in molybdenum industry. Molybdenum industry is overcapacity and has many contradictions. For example, the competition is intensified. Besides, international and domestic molybdenum market price declines sharply, and the price is at lowest point since 2003. At this situation, many molybdenum businesses were hard to operate. Many scholars believed that the current market price of molybdenum has been away from the industry fundamentals and market supply and demand, which is below the industry average cost production. It is high time to take effective measures, such as limiting production, support value, restricted price and other measures to promote market and increase the price. In response to the current challenges of molybdenum industry, boosting market confidence, promoting the molybdenum industry supply-side structural reforms, the national backbone molybdenum mining companies reach a consensus, which is continues to limit raw material production.

According to the content of proposal, should set up molybdenum mining enterprises contact group to play a leading role, to take effective measures to safeguard the interests of the industry, making the molybdenum industry to long-term stable development. In addition, by conscientiously implement the innovation, coordination, green, open, shared development concept encourage molybdenum companies to innovation, to promote industrial upgrading, to carry out the supply-side reform practice and to meet market demand, making molybdenum market stable development.

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