News on June 4, 2021:

Starting yesterday evening, many international market participants reported the same sentence to the author: "The international market is going crazy!"

According to our understanding, some transactions were reached at Tianjin Port and Busan Port at 13.5-13.8 US dollars yesterday morning, and the transaction price rose to 14-14.25 US dollars yesterday afternoon, and the transaction price rose to 14.6-14.8 US dollars last night, which was an increase of more than one day. 1.

It's crazy indeed.

This morning, some domestic market participants asked: "What happened abroad? So crazy!" According to feedback from some international market participants, the rise in international molybdenum prices yesterday was related to several factors.

details as follows:

Factor 1: Molybdenum terminal demand continues to be strong due to economic recovery in China, Europe and the United States;

Factor 2: The soaring global shipping costs and poor shipping schedules have resulted in relatively tight supply of foreign molybdenum raw materials;

Factor 3: Since the end of May, large steel companies such as Qingshan have entered the market to purchase ferromolybdenum and have been active;

Factor 4: A South American mining company circulated in the market may be delayed in delivery due to long-term orders in July.

It can be seen from the above factors that the consumption factor is a bullish factor that has occurred and is still continuing. Although there are exaggerated factors circulating in the market, news on the supply side still has a significant impact on the market's upward trend.

In the final analysis, the continuous economic recovery and steady demand since the second quarter have led to the supply and demand fundamentals of the global molybdenum market continue to be tight. Although the Chinese market is restricted by the excessive social inventory remaining in 2020, there are many obstacles to the rise of ferromolybdenum. For two consecutive months, China's steel recruitment has exceeded 12,000 tons. In early June, large steel companies entered the market quickly and purchased in large quantities. The performance of the molybdenum market has further strengthened the confidence of the molybdenum market and the sentiment of long-term growth.

The combination of the above multiple factors promoted the firm performance of molybdenum prices this week.