China's ferro molybdenum prices strengthen on better fundamentals

Chinese prices of ferromolybdenum (FeMo) under Mysteel's tracking witnessed steeper on-week increase over July 31-August 4, chiefly buoyed by the higher prices of raw materials in both domestic and global markets, market sources shared.

As of August 4, the price of 60% FeMo in Northeast China, a core production hub for the ferroalloy, had climbed to Yuan 277,000/tonne ($38,509/t) including the 13% VAT, up by a substantial Yuan 15,000/t on week, Mysteel's assessment showed.

Many domestic FeMo smelters met resistance when they attempted to procure some moly concentrates at lower prices last week, as market prices of the raw material surged on its tight supply and firm demand, a Shanghai-based market watcher observed.

On August 4, the price of moly concentrates with 45% Mo content in Henan, a major mining area in Central China, grew by Yuan 240/mtu on week to reach Yuan 4,200/mtu including the 13% VAT, according to Mysteel's tracking.

Meanwhile, strong trading of imported moly oxide in the global market saw the prices move higher to $23.5-24/lb last week from the prior week's $23-23.25/lb, Mysteel tracked.

On the other hand, "FeMo demand among Chinese stainless mills remained firm last week, supported by the recent hikes in their stainless prices," the Shanghai source said.

The spot price of 316L*2B stainless steel coils from leading stainless producer Taiyuan Iron & Steel Co settled at Yuan 27,900/t last Friday after an on-week gain of Yuan 200/t, Mysteel's data showed.

Despite the fact that the surge in FeMo prices seemed too fast to be accepted by some stainless mills, prices of the noble alloy will rise further this week due to high raw materials prices, the source projected.

Note: This article has been written in accordance with an agreement between Mysteel and SteelMint.