Trading of molybdenum in the Chinese market was very thin this
week, and most traders believe prices could drop again in the
Metal Bulletin's price for molybdenum concentrate was unchanged
for a third week at 1,820-1,830 yuan per mtu ($288-290).
"The market has been very quiet for the past month, and the
latest fall in the price of ferro-molybdenum hit market
sentiment," a Beijing analyst said.
Most stainless steel mills finished their May purchasing at the
end of the last month, when mainstream prices dropped around
1,000-2,000 yuan from April at 124,000-125,000 yuan per tonne.
"Ferro-molybdenum smelters are not willing to buy concentrate
because of the falling price. They are anticipating the
concentrate price dropping further in the days ahead," a
ferro-molybdenum producer in Liaoning province said.
"We think prices will drop to [around] 1,800 yuan soon, even
though that miners are unwilling to sell," said another
producer source in Liaoning.