China’s Ferro-Molybdenum Prices Rise on Strong Steel Demand

Ferro-molybdenum

Ferro-molybdenum prices in China have surged in recent weeks, driven by increased demand and higher tender prices from steel producers. The rise comes as Chinese steelmakers scramble to meet molybdenum-containing steel orders, pushing up prices in a market already facing supply constraints.

Supply Struggles Amid Rising Demand

As steel mills in China ramped up their purchases, tender volumes for August were expected to reach around 10,000 tonnes, but actual purchases have surpassed expectations, totaling 12,000-13,000 tonnes so far. Steelmakers bought the alloy at prices ranging from 238,000 to 239,000 yuan per tonne, up by 2,000-3,000 yuan from the previous week.

At the same time, domestic alloy output fell by 10% in July compared to the previous month, according to the China Nonferrous Metals Industry Association (CNIA). The drop, attributed to squeezed profit margins and rising feedstock costs, has led many producers to cut or suspend production. Heavy rains in the Huludao and Chaoyang regions in Liaoning province also disrupted logistics, further tightening supply.

Mixed Outlook for Demand

Looking ahead, market participants are divided on the demand outlook. Some expect steel mills to continue stockpiling ferro-molybdenum ahead of China’s national holiday in early October, in preparation for increased post-summer steel demand. Others caution that mills may hold back on bulk purchases to avoid further price increases.