China’s Shenglong Increases Molybdenum Concentrate Auction Prices

China Molybdenum

Rising Costs Reflect Stronger Demand and Market Conditions

Chinese mining giant Luoyang Shenglong, also known as Luanchuan Longyu, has raised auction prices for molybdenum concentrate. The company sold 510 tons of 45% grade concentrate at 3,760-3,775 yuan/mtu ($23.95-24.04/lb), 60 tons of 47% grade concentrate at 3,780 yuan/mtu, and 240 tons of 50% grade concentrate at 3,775-3,795 yuan/mtu, marking an increase from the starting price of 3,690 yuan/mtu. This follows a previous sale on August 13, where 810 tons of similar-grade concentrate were sold at 3,640-3,660 yuan/mtu.

Shenglong, with a monthly production capacity of 1,500 tons for 47% grade concentrate, typically sells around 1,000 tons each month. Other major mining firms, such as Yichun Luming, have also reported rising prices for molybdenum concentrate. Domestic prices for 45% grade concentrate increased to 3,730-3,760 yuan/mtu, reflecting higher offers from mining companies and increased buying interest from steel producers.

The rise in prices is attributed to expected restocking activities by steel producers before the National Day holiday and increased alloy production costs. However, alloy transactions from steelmakers have yet to align with the increased costs.