Molybdenum highlights

摘要

Molybdenum prices continued to edge lower through August, but stabilised towards the end of the month with rumours of a price floor on the horizon in Europe as producers are refusing to drop prices further. Producers have been willing to sell stocks to avoid holding large inventories in the approach to the year-end and consumers have only been purchasing in small amounts to avoid purchasing material in a falling market. The rate of decline in prices has slowed through August suggesting a floor may be near. But with supply plentiful, and likely to increase should Chinese export duties be removed, and demand weak, few buyers are willing to take this risk. Although Chinese molybdenum metal producers may look towards the export market, many are already cutting output with market prices below cost.