Chinese FeMo prices have continued to edge lower because of seasonally slowing demand from steel mills. Domestic concentrate prices are currently steady, narrowing FeMo producers’ margins and prompting some operations to idle output. We do not expect these cutbacks to affect the Chinese market, as low demand will persist in the near term and FeMo stocks have risen recently. It is a similar story in Western markets as consumer demand continues to wane because of the summer period. European moly prices have declined so far in July and US prices have steadied after a sudden, short-lived pickup in the second half of June. With buying activity remaining subdued for now, prices are likely to decline further. Uncertainty over the potential for demand to pick up in late Q3/ early Q4 remains a key downside risk across the markets.
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