Prices weaken as global market moves towards slight surplus

摘要

Ferromolybdenum and oxide prices have trended downwards over the last month, albeit inthe context of a quiet spot market. General sentiment on demand is still positive, but shorttermuncertainty is causing consumers to be cautious and restrict their intake to long-termcontracted volumes. CRU believes the global market balance will move into slight surplus inQ3 provided Chinese producers increase their output as expected. Disruption to concentrateor roasting capacity in China due to environmental inspections—which have affected theproduction of other commodities—has the potential to change this calculation. Buyers willwatch for evidence of change on this front before returning to the spot market.