Global molybdenum prices increased in April’24 and are expected to move with the similar trend in May
In the last week of April’24, molybdenum prices remained bullish, driven by strong demand from downstream steel manufacturing sector. Despite experiencing a minor dip early in the month, molybdenum prices rebounded notably due to a surge in stainless steel prices as molybdenum is a pivotal feedstock for the production of stainless steel.
Additionally, the surge in the molybdenum prices was further influenced by reduced shipments leading to fewer supplies availability in the market, prompting traders to hike their pricing for molybdenum. Similarly, ferromolybdenum manufacturers were strictly not in favour of setting their prices low despite constant pressure from stainless steel companies. Considering the current crunch in the steel market, the reluctance of ferromolybdenum producers from easing the prices looks obvious and understandable.
The increasing price dynamic for molybdenum was further supported by a resurgence in the construction industry, which has recently gained momentum. China’s Construction PMI, for instance, has been on a rise since January 2024. April 2024 PMI has been registered at 56.3 v/s 53.9 in January 2024.
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Looking ahead to May 2024, it is anticipated that molybdenum prices will continue their upward trajectory. This expectation is primarily based on the projected significant increase in stainless steel prices, which heavily influences molybdenum market trends. As the construction and manufacturing sectors continue to expand, the demand for molybdenum is expected to remain robust, supporting the ongoing price increase.
