Low Moly Prices Likely to Prevent Chinese Stockpiling

Platts reported that Chinese traders, who normally stockpile molybdenum imports when prices near $10 per pound, are not likely to do so in the coming months as Chinese demand is expected to stay low.

As quoted in the market news:

‘The Chinese domestic market is slow, and so is overseas. There is only a narrow difference between prices to take advantage of the price arbitrage. Also if domestic prices go down, there is nowhere for imports to go,’ said one Chinese trader.

A second Chinese trader said: ‘We [have not] decided whether to re-stock a bit or not when import prices reach 10.50/lb. We will have to wait and see.’

‘Moly concentrate is at Yuan 1,480/mtu ex-plant ($240/mtu, or for 10 kg of moly contained in one ton of concentrate plus 17% value added tax) down from above Yuan 1,520/mtu two weeks ago. Domestic ferromoly prices fell to about Yuan 100,000/mt ex-plant, down about Yuan 10,000/mt from two weeks ago,’ the trader added.

Click here to read the full Platts report.