In the second week after the New Year, steel mills returned to the market, restocking raw materials for the Spring Festival. However, limited buying volumes restricted transaction price as low as RMB99,000-100,000/mt (USD16,229-16,393/mt, export duty excluded) by acceptance. The return of producers, traders and consumers to the market elevated European moly price. Due to Christmas holidays, European moly market has been quiet for two weeks, at present it boomed as customers had strong interest to supplement materials.
A Hebei supplier offered RMB101,000/mt (USD16,557/mt, export duty excluded) for FeMo60, and still did business with old customers. Moly concentrates price was unchanged at RMB1,420-1,440/mtu (USD232-236/mtu, export duty excluded) by acceptance, and the supply was somewhat tight in the market as some mines stopped production in bad weather.
European moly oxide transacted at USD9.95-10/lbMo, even the maximum USD10.1/lbMo was heard. A Shaanxi moly oxide exporter gave offer of USD10/lbMo after receiving many inquiries. They transacted one container, and didn’t hurry to sell due to inventory shortage and price uptick. Moly oxide might maintain rise trend till weekend for consistent restocking.
It is expected that FeMo60 price would rise further, as steel mills actively book new orders. Sources see better moly market than that of last year, but new-increased mines operation in 2H this year will produce an effect on the balance of supply and demand, undermining upward momentum.