A recent sharp decline in molybdenum prices has caused concern both in and outside the industry.
Since February, both molybdenum concentrate and molybdenum iron prices have dropped more than 30%. The latest molybdenum iron price is now CNY 240,000/ton, down 36.8% from its high point of CNY 380,000 in February. Currently, the molybdenum iron price corresponds to the molybdenum concentrate price below CNY 3,700.
A supply-demand imbalance has led to a significant reduction in molybdenum iron procurement by steel mills. This, in turn, has resulted in the accumulation of upstream molybdenum mine inventories and the rapid decline in prices. This situation has reminded some of the market conditions in 2005.
This situation has attracted widespread attention from the market, especially pertaining to its impact on the molybdenum industry and related industry chains. Other factors, including global economic uncertainty, policy environment, and supply & demand, also contribute to fluctuation in molybdenum prices and market trends.
It is essential to closely monitor these changes and to make timely adjustments and responses to mitigate risk and maximize opportunity.