SHANGHAI, Aug 15 (SMM) –
According to incomplete data gathered by SMM, China's ferro-molybdenum production for July 2023 was approximately 15,800 mt, marking a near 4% decrease from the previous month. This reduction in ferro-molybdenum production can be primarily attributed to two factors:
Firstly, with molybdenum prices remaining at a high level, ferro-molybdenum smelters have been particularly careful in managing their cost risks. As a result, some manufacturers have decided to operate at only 50% to 70% of their full capacity to mitigate the risk of costs exceeding sale prices.
Secondly, the drop in production can also be attributed to scheduled maintenance in some smelting factories during July, which inevitably led to the overall decrease in ferro-molybdenum output.
Looking forward to August, factories that were previously under maintenance have now resumed production, while others have scheduled production cuts. As such, SMM anticipates that overall shifts in ferro-molybdenum production in August will be minimal, although a slight increase could be possible.
