Molybdenum Market Demand and Price Fluctuations Are Weary The overall international molybdenum market has changed with the changes of the season since 2010, but the market's hot and cold seasons are opposite to the seasons. For example, the weather changed from the warmth in the second quarter to the heat in the third quarter, and gradually cooled to cold in the fourth quarter. However, the molybdenum market is hot and cold. However, recent developments in the regional markets have not been balanced. The European and American markets have seen some improvement, while Asia’s performance has not been satisfactory.
Although the demand for China's molybdenum market began to improve in the fourth quarter, the stocks of molybdenum and iron from major steel mills rose. Moreover, due to the constraints of energy sources, steel production has continued to slump, which has limited the growth of molybdenum demand. However, there are sufficient stocks of molybdenum producers due to the normal production of most domestic manufacturers. For this reason, domestic prices showed a weak trend as expected. Among them, molybdenum concentrate decreased from 2,050 yuan per kilogram to 1,950 yuan and molybdenum oxide decreased from 2,140 yuan per kilogram to 2,065 yuan. Although the demand for molybdenum has improved due to the strong production of low-alloy and high-speed steel and stimulated the price to pick up once, the price fell again due to the abundant supply of the market. Therefore, the price of ferro-molybdenum is within a relatively large range of 127,000 to 132,000 yuan per ton.
In contrast, however, the European and North American molybdenum markets showed some signs of recovery after the traditional third-quarter weakness. However, the construction industry in the United States is still sluggish, and the industry generally believes it is still difficult to improve before entering 2011. At the same time, durable goods orders fell by 1.3% in August, the largest decline in nearly a year. The main reason for the decline was the sharp drop in aircraft manufacturing and auto industry orders. This has increased people’s concerns about the weak manufacturing activity in the country. However, with the gradual increase in equipment utilization rate from the fourth quarter and the addition of alloy steel and raw material inventory, users have to some extent buffered the hesitation of recovery and so far the aircraft and automobile industries have steadily improved and caused molybdenum demand and purchases. Increased orders. And the price is firm at 16 to 16.5 U.S. dollars per pound.
As for the unbalanced performance of the European steel industry on the road to recovery, for example, Spain and Italy are still struggling for the conversion of domestic production, but the vitality of German and Finnish steel manufacturers is increasing. Overall, the modest recovery in stainless steel production reflects that the demand for molybdenum market activity is still limited. The increase in stainless steel orders in Europe is mainly driven by the demand for durable consumer products, but support from the investment sector still lags behind. From this we can also see that the pace of recovery in the overall manufacturing system in Europe is inconsistent. Among them, the production of standard grade products is accumulating vitality, and more molybdenum-containing special grade alloy steels have returned to pre-crisis levels. In addition to the UK, the investment in the construction industry in Europe has continued to decline. In recent months, prices have seen a steady rise. Among them, European warehouses in Europe's strategic metals market have a 57% molybdenum oxide price, which has slightly increased to 15.9 to 16.1 US dollars per pound and grades. For 65% of ferromolybdenum increased from US$39.5 to US$40.5 per kilogram to US$40 to US$41. The supply and demand market has become more balanced.
In short, although the global molybdenum market demand is still facing difficulties, and in 2010 it was generally flat, demand in various regions generally exceeded the third quarter in the fourth quarter. In particular, it was boosted by more than expected sales of Chinese automobiles. Of course, this may be due to the government's proposal to promote automobile consumption in 2011 to stimulate consumers to buy in advance. But in any case, this will lead to the need for special heat-resistant and wear-resistant alloys, and the corresponding use of molybdenum will increase. And with the improvement of global demand, it also caused the US market to replenish inventory.
According to a survey organized by the US Geological Survey (USGS), the Japan Steel Association (JISF) and the British Institute of Goods (CRU), the global molybdenum market will show a deficit of 400,000 pounds in the fourth quarter of 2010. In contrast, the surpluses in the same period in 2009 and the third quarter of 2010 were 3.4 million pounds and 7.8 million pounds, respectively. This will also reduce the annual surplus from the 25.2 million pounds in 2009 to 9.9 million pounds. However, judging from the Western market, the deficit in the fourth quarter of 2010 will increase sharply from 6 million pounds in the same period in 2009 and 3.9 million pounds in the third quarter to 8.5 million pounds. From the whole year, the deficit will increase from 2.2 million pounds in 2009 to 27.9 million.
Although the demand for China's molybdenum market began to improve in the fourth quarter, the stocks of molybdenum and iron from major steel mills rose. Moreover, due to the constraints of energy sources, steel production has continued to slump, which has limited the growth of molybdenum demand. However, there are sufficient stocks of molybdenum producers due to the normal production of most domestic manufacturers. For this reason, domestic prices showed a weak trend as expected. Among them, molybdenum concentrate decreased from 2,050 yuan per kilogram to 1,950 yuan and molybdenum oxide decreased from 2,140 yuan per kilogram to 2,065 yuan. Although the demand for molybdenum has improved due to the strong production of low-alloy and high-speed steel and stimulated the price to pick up once, the price fell again due to the abundant supply of the market. Therefore, the price of ferro-molybdenum is within a relatively large range of 127,000 to 132,000 yuan per ton.
In contrast, however, the European and North American molybdenum markets showed some signs of recovery after the traditional third-quarter weakness. However, the construction industry in the United States is still sluggish, and the industry generally believes it is still difficult to improve before entering 2011. At the same time, durable goods orders fell by 1.3% in August, the largest decline in nearly a year. The main reason for the decline was the sharp drop in aircraft manufacturing and auto industry orders. This has increased people’s concerns about the weak manufacturing activity in the country. However, with the gradual increase in equipment utilization rate from the fourth quarter and the addition of alloy steel and raw material inventory, users have to some extent buffered the hesitation of recovery and so far the aircraft and automobile industries have steadily improved and caused molybdenum demand and purchases. Increased orders. And the price is firm at 16 to 16.5 U.S. dollars per pound.
As for the unbalanced performance of the European steel industry on the road to recovery, for example, Spain and Italy are still struggling for the conversion of domestic production, but the vitality of German and Finnish steel manufacturers is increasing. Overall, the modest recovery in stainless steel production reflects that the demand for molybdenum market activity is still limited. The increase in stainless steel orders in Europe is mainly driven by the demand for durable consumer products, but support from the investment sector still lags behind. From this we can also see that the pace of recovery in the overall manufacturing system in Europe is inconsistent. Among them, the production of standard grade products is accumulating vitality, and more molybdenum-containing special grade alloy steels have returned to pre-crisis levels. In addition to the UK, the investment in the construction industry in Europe has continued to decline. In recent months, prices have seen a steady rise. Among them, European warehouses in Europe's strategic metals market have a 57% molybdenum oxide price, which has slightly increased to 15.9 to 16.1 US dollars per pound and grades. For 65% of ferromolybdenum increased from US$39.5 to US$40.5 per kilogram to US$40 to US$41. The supply and demand market has become more balanced.
In short, although the global molybdenum market demand is still facing difficulties, and in 2010 it was generally flat, demand in various regions generally exceeded the third quarter in the fourth quarter. In particular, it was boosted by more than expected sales of Chinese automobiles. Of course, this may be due to the government's proposal to promote automobile consumption in 2011 to stimulate consumers to buy in advance. But in any case, this will lead to the need for special heat-resistant and wear-resistant alloys, and the corresponding use of molybdenum will increase. And with the improvement of global demand, it also caused the US market to replenish inventory.
According to a survey organized by the US Geological Survey (USGS), the Japan Steel Association (JISF) and the British Institute of Goods (CRU), the global molybdenum market will show a deficit of 400,000 pounds in the fourth quarter of 2010. In contrast, the surpluses in the same period in 2009 and the third quarter of 2010 were 3.4 million pounds and 7.8 million pounds, respectively. This will also reduce the annual surplus from the 25.2 million pounds in 2009 to 9.9 million pounds. However, judging from the Western market, the deficit in the fourth quarter of 2010 will increase sharply from 6 million pounds in the same period in 2009 and 3.9 million pounds in the third quarter to 8.5 million pounds. From the whole year, the deficit will increase from 2.2 million pounds in 2009 to 27.9 million.