Molybdenum Prices Are Expected to Show Minimum Fluctuation in the Coming Months
In the first quarter of 2024, Molybdenum Prices have shown remarkable stability, supported by robust demand and consistent operations across major producers, including Freeport-McMoRan Inc. and Southern Copper Corp. This period of steadiness is expected to slightly shift as we enter the second quarter, with projections indicating a potential decrease in prices due to an uptick in production levels.
According to Procurement Resource, February saw a notable increase in molybdenum prices, propelled by significant demand that kept smelters operating at full capacity. This surge in demand, primarily driven by the steel industry, has maintained high operational rates at ferromolybdenum production facilities. With the steel mills continuing to place substantial orders, the demand for molybdenum remains strong, underpinning the market's stability.
Production activities at molybdenum mines ramped up in March, following a brief pause during the Lantern Festival. Similarly, ferromolybdenum plants resumed full-scale operations after the Chinese New Year break, buoyed by an influx of orders. This robust demand scenario has led to optimistic forecasts for molybdenum prices in the near term.
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Analysts at Procurement Resource said that contrary to expectations of a downturn due to increased production, the outlook for molybdenum prices in the second quarter of 2024 remains positive. The continuous need for molybdenum from steel mills, which are experiencing steady order flows post-New Year, is expected to keep prices relatively stable. Despite potential rises in production costs, the market for molybdenum is likely to sustain its current price levels, avoiding any significant declines.
