Chinese molybdenum concentrate prices firm up on tight supply

Platts reported that China's domestic molybdenum concentrate prices appear to have firmed up this week as supply continues to tighten. As per report Molybdenum concentrate prices were mostly heard between CNY 1,700 to CNY 1,900 per tonne up about CNY 100 to CNY 150 per tonne from the previous week.

Industry sources said that supply was tight as most mines in Huludao in China's Liaoning province had stopped production, as previous prices at CNY 1,500 to CNY1,700 per tonne were too close to their costs. In addition, sources said that it was hard to work in the cold winter weather.

Sources noted that owners had been selling from their current stockpiles. With mines closing and no replenishment of stockpiles in sight, supply has tightened.

As a result, Chinese domestic ferromolybdenum prices have continued to inch up with most indications ranging widely between CNY 130,000 per tonne and CNY 180,000 per tonne ex-plant, although no apparent increase in domestic demand was heard. Prices were heard below CNY 130,000 per tonne previously. Molybdenum concentrate is the raw material used to produce ferromolybdenum.

Chinese domestic molybdenum oxide prices also appeared to firmed up in view of limited molybdenum oxide with indications at CNY 1,950 to CNY 2,000 per tonne up about CNY 100 per tonne from the previous week.

Meanwhile, Chinese spot molybdenum oxide and ferromolybdenum export trade remained stuck in the doldrums due to an extreme lack of overseas buying interest in view of uncertainty over the worsening state of the global economy. – Steel Guru