<article><p class="lead">Chinese ferro-molybdenum prices are expected to hold firm in the coming week as steady demand from steelmakers and tight concentrate feedstock availability support the alloy market, according to market participants.</p><p><i>Argus </i>today assessed domestic prices for 60pc grade alloy at 153,000-157,000 yuan/t, or Yn255-262/kg ($39.41-40.44/kg) for contained molybdenum, stable from yesterday following a fall of Yn1,000/t on 19 July pressured by lower tender prices paid by steelmakers.</p><p>A fall in molybdenum prices outside of China, coupled with lower tender prices issued by major steel producers, prevented Chinese spot prices from rising late last week. Trading companies and several alloy smelters reduced offer prices slightly to generate sales earlier this week, while most alloy producers have held firm on their offer prices in view of firm concentrate prices supported by tight availability. </p><p>Chinese steelmakers have purchased around 6,000t of the noble alloy so far this month, with more steelmakers scheduled to issue new tenders in the rest of this month. They secured around 11,000t in June, with market participants expecting July purchases to remain high at about 10,000t.</p><p>Major Heilongjiang-based mining company Yichun Luming this week has began another 10-day equipment maintenance, after completing a 10-day overhaul in late June.</p><p>China imported 3,377t of unroasted and roasted molybdenum concentrate in June, down sharply by 33.64pc from 5,089t in May and by 63.60pc from 9,279t a year earlier, official customs data show.</p><p>Chinese alloy producers have switched to purchasing concentrate feedstock from domestic suppliers from overseas mines, as prices outside of China have stood higher than domestic prices in the past few months, following a recovery in demand from international consumers with the easing of the global Covid-19 pandemic. </p><p>Output disruptions in the major molybdenum production hubs of Liaoning and Henan provinces have emerged recently, which could support prices in the near term.</p><p>Several alloy producers in Liaoning province have cut or suspended output in the past week during environmental inspections. Roads and subway stations have been submerged across central China's Henan province as heavy rain resulted in severe floods, with over 144,000 residents affected in the province and 12 people killed in the downtown area of the capital city Zhengzhou.</p><p>Several producers near Zhengzhou have suspended production after their workshops were flooded. Mining companies and alloy smelters in Luoyang city were operating at normal run rates in the last two days without heavy rain. Most producers in Henan province are located in Luoyang city, which is some distance from Zhengzhou.</p><p>"We are still observing the impact of the output disruptions. The floods may affect logistics and deliveries in the near term as Zhengzhou is a hub for railway and highway transportation," a key Henan-based molybdenum producer told <i>Argus</i>.</p></article>
