Print article
China domestic molybdenum market improved in the days before Spring Festival mainly due to the concentrate purchases by special steel mills for their daily production.
At present, the price of molybdenum concentrate rebounded to about RMB3000-3100/mtu, while price of ferromolybdenum also rose to RMB215000-225000/mt. Although market is yet to reach its expected level, sharp fluctuation in price observed over the last two years is less probable now.
Export price for Chinese ferro-molybdenum increased by $1-2 to $45-47/kg with dealing price of $44-46(FOB).
"Changes in the market is a sign of rising confidence of participants that market will rebound," said a trader in Liaoning. Business activity is expected to continue its upturn for a few weeks. If supply of moly concentrate is still tight, the price of ferromolybdenum may respond slightly. A trader from Hong Kong indicated it was hard recently to buy moly concentrates in large quantities.
Most molybdenum mines are expected to deplete their inventories before Spring Festival, resulting in growing demand for FeMo.
Unlike Chinese domestic market the international markets of molybdenum are less active. Ferromolybdenum (65-70%) is quoted at $47.5-50/kg in Europe, down $2.5-3. Ferromolybdenum (60%) is at $44-46/kg in Rotterdam port, up $2. This increase may be partly attributed to the rise in export price of Chinese FeMo.