SMM data shows that in April 2023, China's ferromolybdenum output was 14,300 mt, down 9% from the previous month. In the first half of April, the domestic molybdenum prices continued to fall. The high-priced raw materials combined with steel mills pushing for lower procurement prices continued to reduce the profits of ferromolybdenum smelters. In the second half of the month, steel mills’ bi solicitations for ferromolybdenum boosted orders at smelters significantly.
Meanwhile, lower-priced raw materials were available in the market. As such, operating rates of smelters gradually recovered. But output still fell due to previous output cuts and maintenance.
Most ferromolybdenum smelters currently report that orders are saturated, and the operating rates have returned to normal. Their production has been scheduled to until early June. SMM expects that ferromolybdenum output will increase significantly in May.
