Molybdenum Daily Commentary on December 13: Demand pressure prompted molybdenum prices to fall again
2018-12-13 15:32:40
Key words: molybdenum, molybdenum concentrate, ferromolybdenum, molybdenum oxide, ammonium molybdate, molybdenum products
Modu Trading Network December 13, 2018:
Terminal demand performance continues to weaken:
Recently, the China Automobile Industry Association released data showing that in November 2018, China's auto industry production and sales continued to show a significant decline compared to the same period last year, continuing the downturn since July. The production and sales of automobiles in the month were 2.498 million units and 2.548 million units respectively. The production and sales volume increased by 7% and 7.1% respectively from the previous month, down 18.9% and 13.9% respectively over the same period of the previous year. The production and sales rate was 102%, and the inventory scale of the manufacturers continued to decline.
Yesterday, Shanghai Baosteel announced that it will continue to reduce the sales price of all steel products in January 2019. Hebei Iron & Steel announced that it will continue to reduce the sales price of construction steel in mid-December 2018.
The pressure on the ferromolybdenum market is still obvious:
Constrained by the sluggish demand of the terminal, the recent market pressure of ferromolybdenum continued to be obvious, and the trading price of the bulk cargo market was light while the transaction price continued to fall. Although the current price of major enterprises has remained at the range of 1.25-129 yuan / ton, the actual transaction price of the market has gradually moved closer to 125,000 yuan / ton.
Today, a steel mill in Shanxi entered the bidding for molybdenum iron. The bidding volume has not been determined. The market is more concerned about this bidding. Before the press release at 14:00 today, the bidding is still in the first round of bargaining.
The pressure of the raw material molybdenum concentrate is greatly reduced:
Due to weak demand and cautious purchases, the price of molybdenum concentrates generally fell yesterday. Today, 45-50% grade molybdenum concentrate market price fell to 1860-1890 yuan / ton, which is the first time since the National Day after more than 45% grade molybdenum concentrate rose more than 1900 yuan / ton, the first drop below 1900 yuan / ton Degree gate.
At present, the price of 35-40% grade molybdenum concentrate has dropped to 1810-1830 yuan / ton, approaching another important threshold of 1800 yuan / ton. The transaction price of low-grade molybdenum concentrate in Luanchuan area yesterday and today continued to fall from last week, and some of the transaction prices fell to 1,820 yuan / ton.
The price of ammonium molybdate has been consolidating this week:
Since the ammonium tetramolybdate rose by 140,000 yuan/ton at the end of October, the price of large enterprises has remained at a high level of 140,000 yuan/ton since the beginning of November. Although the price of raw material molybdenum concentrate continued to fall at the end of November, ammonium molybdate Prices are always supported due to factors such as limited supply. After more than half a month of sideline stalemate, the transaction price of ammonium molybdate has been consolidating this week, and the prices of major companies have also been lowered accordingly. Today, the mainstream price of ammonium tetramolybdate was lowered to 14-1,422,000 yuan / ton, and the mainstream price of ammonium dimolybdate was lowered to 14.3-145 million yuan / ton.
Summary: Molybdenum is still under pressure, the future test remains
For the next development of the molybdenum market, the market reached a consensus on the difficulty in recovering the steel mill purchases in December. Under the premise of low demand, the production of major molybdenum enterprises remained normal, the supply of products remained at a high level, and the price of molybdenum in December was Naturally, more obvious pressure is formed, which is the most fundamental reason for the long-term lack of market confidence.
As the end of the year, some enterprises will continue to sell plans next week. At that time, the transaction prices of molybdenum concentrate, ferromolybdenum and ammonium molybdate products are expected to have further consolidation space.
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