Molybdenum highlights

摘要

The molybdenum market has had an impressive year so far after a disappointing start. Ferro-molybdenum and molybdic oxide prices have increased rapidly on renewed demand and temporary supply concerns. Trading speculation was further spurred on supply worries after the recent earthquake in northern Chile. Although it was soon clear that the quake had not affected mine production or port logistics, the underlying shortfall in spot market supply had driven up molybdenum concentrates and ferro-molybdenum prices to levels last seen 12 months ago. The rapid gains in nickel prices have also helped to propel molybdenum prices higher in recent weeks as stainless steel buyers place orders with stainless mills in advance of surcharge adjustments, spurring on higher molybdenum purchases from stainless mills seeking to ensure they have adequate raw materials on hand to meet improving demand from their customers. In addition to this speculative buying surge, real underlying demand is showing signs of strengthening in several segments that use stainless steel in Europe. European crude stainless steel production was 670,000 tonnes in February this year, up 2% year-on-year. While we may see further gains in molybdenum prices in the near term in line with nickel price improvement, we believe a downward correction in prices is likely during the third quarter.