2 1 Shi Ji Jing Ji Bao Dao·2025-07-31 23:07Core Viewpoint - The recent surge in molybdenum prices, driven by supply constraints due to an accident at a major mining company, has prompted leading steel companies to issue a joint statement condemning irrational market speculation and announcing a halt in molybdenum purchases [1][8]. Group 1: Molybdenum Market Dynamics - Molybdenum prices have significantly increased due to supply reductions following an accident at China Gold Group's Inner Mongolia mining company, which has halted production [5][7]. - Data indicates that the average price of domestic molybdenum concentrate rose from 3,985 RMB/ton to 4,285 RMB/ton, while molybdenum iron prices increased from 252,500 RMB/ton to 276,500 RMB/ton, marking a 9.5% rise over four days [5][6]. - The Inner Mongolia mining company's annual molybdenum concentrate production of 11,900 tons accounts for approximately 3.9% of China's total output, with expected monthly reductions of around 1,000 tons due to the shutdown [5][6]. Group 2: Steel Industry Response - Major steel companies, including Taiyuan Iron and Steel Group, CITIC Pacific Special Steel, and Qingtuo Group, have publicly condemned the speculative behavior in the molybdenum market, asserting that it distorts supply-demand relationships and harms the industry's health [1][8]. - The joint statement from these companies emphasizes the need to resist speculative trading and return to fundamental pricing based on actual supply and demand [8][15]. - The ongoing price increases in molybdenum are occurring alongside rising costs for other raw materials such as iron ore and coke, further pressuring the steel industry [12][14]. Group 3: Industry Trends and Projections - The demand for molybdenum iron remains stable, with a reported 10.47% increase in domestic bidding volumes for molybdenum iron in the first seven months of 2025 compared to the previous year [6]. - The production of duplex steel in the first half of the year reached approximately 308,900 tons, reflecting a 15% year-on-year increase, indicating robust downstream demand [6]. - The recent price increases in molybdenum and other raw materials may only represent a temporary phase, with future price sustainability dependent on various factors, including import dynamics [8][11].