Molybdenum market update on March 5, 2025
The domestic molybdenum market continues to operate on a generally weak trend, primarily reflected in the slight downward shift in the price center of most products and a lack of confidence among industry participants regarding the future market outlook. Today, the prices of molybdenum concentrate, ferromolybdenum, and molybdenum powder have decreased by approximately 10 yuan/ton-degree, 1,000 yuan/ton, and 5 yuan/kg, respectively.
According to China Tungsten Online, despite relatively strong purchasing enthusiasm from steel companies and end customers, the main reasons for the counterintuitive decline in molybdenum product prices instead of an increase are as follows: First, the steel market remains lukewarm, with steel prices staying low, leading steel companies to exert significant downward pressure on ferromolybdenum prices. Second, the oscillating decline in international molybdenum oxide and European ferromolybdenum prices has, to some extent, undermined confidence in maintaining domestic molybdenum prices. Third, with the rapid development of artificial intelligence, production costs for many molybdenum manufacturers have decreased, which is also a factor preventing molybdenum prices from rising.
Recently, steel companies such as Zhongnan Iron & Steel, Angang Steel, Hunan Valin Xiangtan Steel, Hebei Steel Group, and Xichang Steel Vanadium have entered the market to tender for ferromolybdenum, with bidding prices generally below 227,000 yuan/ton. In February, the total volume of ferromolybdenum tendered by steel companies reached approximately 13,500 tons, up by about 28.27% month-on-month and approximately 3.85% year-on-year.
On the news front, according to MarketsandMarkets, the global military artificial intelligence market was valued at 9.2 billion USD in 2023 and is projected to reach 38.8 billion USD by 2028, with a compound annual growth rate (CAGR) of 33.3%, indicating rapid growth. Consequently, the molybdenum market stands to benefit. As the application of artificial intelligence in the military sector continues to expand, the quantity and performance of various intelligent military equipment—such as unmanned combat systems and intelligent air defense and missile defense systems—will improve. The manufacturing of these systems requires significant use of molybdenum products, such as molybdenum alloys.
Price of molybdenum products on March 5, 2025
Molybdenum rod picture
