Trading of molybdenum in the Chinese market was very thin this week, and most traders believe prices could drop again in the near term.
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.