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China’s State Reserve Bureau (SRB) bought 5,300 tonnes of molybdenum oxide from major market participants on Wednesday October 28, market sources told Metal Bulletin.
It was the third time that the SRB has bought molybdenum oxide in the market this year. It bought 3,000 tonnes in April and 7,000 tonnes in July.
The price this time was settled at 805 yuan ($126.52) per mtu, with 1,400 tonnes from Jinduicheng Molybdenum Group, 2,800 tonnes from China Molybdenum and 1,100 tonnes from Hualong Molybdenum, market sources said.
The price was lower than market expectations, which had been for about 820 yuan per mtu. As a result, with suppliers reluctant to sell larger volumes, the final volume bought came in lower than the SRB’s initial target of 7,300 tonnes.
“The delivery time is within the next four months. Today’s prices are very low, so it’s more likely prices will pick up. Signs of an upturn are showing up in the European market,” a moly analyst said.
Metal Bulletin assessed 45% molybdenum concentrate prices at 700-730 yuan per mtu on Wednesday October 28.
Kiki Kang kiki.kang@metalbulletinasia.com Wechat: KikiKang_MB