International molybdenum prices rebounded from oversold domestic ferromolybdenum prices stabilized! |Molybdenum City Daily Review (2021-3-30)

Tender results

Since yesterday, a number of steel mills announced the results of bidding for ferromolybdenum, and large and Chinese steel companies' bid opening prices were reached in the acceptance range of 10.9-10.97 million yuan/ton. Among them, the opening bids of the two major steel plants in Shanxi and Zhejiang were both accepting 109,000 yuan, which was in line with the expectations of most molybdenum companies.

Judging from the results of the bid opening of key steel companies from yesterday to today, ferromolybdenum has been actively traded at the 110,000 yuan mark. After many steel companies entered the market, the total volume of steel recruits for ferromolybdenum in March has finally achieved the expected target of 9,000 tons of total ferromolybdenum.

International Molybdenum City

Affected by the active steel recruitment in China's molybdenum market yesterday, the trading volume of the international molybdenum market increased significantly. According to incomplete statistics, the trading volume of molybdenum oxide and ferromolybdenum at major ports exceeded 300 tons yesterday, becoming the most active trading day in recent times.

In terms of price, molybdenum oxide traded at 10.7-10.75 US dollars per pound of molybdenum in the daytime yesterday. In the evening, molybdenum oxide was also partially traded at 10.8-10.9 US dollars in Busan and European markets.

Affected by the increase in trading volume and inquiries, some manufacturers and holding traders are reluctant to sell today, and some of the quotations have returned to the $11 round.

Recent attention

Affected by the bottoming out of international molybdenum prices, sentiment in the domestic molybdenum market has changed. At present, market participants are more concerned about the trend of molybdenum prices in the later period, and the market has different views on whether molybdenum prices can rise sharply in April.

Based on the analysis of the supply and demand situation, the conditions for molybdenum prices to bottom out and stabilize in the short term are ripe. Domestic ferromolybdenum and international molybdenum prices have entered a stage of stabilizing and promoting transactions. With the support of transaction volume, the trend of price decline has been suspended. In terms of raw materials, there is still a certain gap between the domestic molybdenum concentrate quotation and the cost of ferromolybdenum, which may not be conducive to the rapid development of molybdenum mine tenders.

It is expected that the new round of transaction prices of molybdenum mines still has room for a slight drop, but the extent is limited.

As for the trend of the molybdenum market in the latter part of April, we must pay close attention to the long-term support of the continuity of demand on prices.