Asian Metal visits Hengtai Molybdenum, Chaoyang Boyuan Metal Industry and Jinda Molybdenum

On 20 November, 2020, Mr. Hao Zhao, Sales Director of Asian Metal, and Mr. Jeven Shi, molybdenum analyst of Asian Metal, visited Linghai Hengtai Molybdenum Co., Ltd., Chaoyang Boyuan Metal Industry Co., Ltd. and Chaoyang Jinda Molybdenum Industry Co., Ltd., and were warmly received by these enterprises.

On the morning of 20 November, Mr. Hao Zhao and Mr. Jeven Shi paid a visit to Linghai Hengtai Molybdenum Co., Ltd. and exchanged views on current market trend of ferromolybdenum with Ms. Xiuying Chang, President of Hengtai Molybdenum. According to Ms. Chang, due to the steady demand from Chinese downstream steel enterprises, the supply of raw material molybdenum concentrate and molybdenum oxide might slightly decrease with the gradual recovery of the demand in the international market and the overall ferromolybdenum price would edge up. Hengtai Molybdenum highly recognized the fair, objective and timely market information provided by Asian Metal and expressed the willingness of maintaining long-term cooperation with Asian Metal in sustainable development of molybdenum market.

On the afternoon of 20 November, Mr. Hao Zhao and Mr. Jeven Shi came to Chaoyang Boyuan Metal Industry Co., Ltd. first and exchanged views on domestic supply of molybdenum raw materials with Mr. Wanjun Zhao, General Manager of Chaoyang Boyuan Metal Industry. Mr. Wanjun Zhao believed that in the past ten months of 2020, amid the worldwide spread of the pandemic, the demand for molybdenum raw materials in the international market decreased and a large number of molybdenum raw materials from overseas markets flooded into China. Thus, it's easier for users to purchase materials in China than in 2019, and meanwhile China's molybdenum raw materials prices continued to decline in the first half of this year.

Then, Mr. Hao Zhao and Mr. Jeven Shi were on a visit to Chaoyang Jinda Molybdenum Industry Co., Ltd. and had exchanges on the current challenges facing by China's ferromolybdenum market with Mr. Guoyou Wu, General Manager of Jinda Molybdenum. Mr. Guoyou Wu stated that China's ferromolybdenum production was in excess relative to the demand from downstream steel mills, resulting in relatively tight supply in China's mines and frequently high raw material purchase prices; while downstream steel companies purchased ferromolybdenum, ferromolybdenum companies competed with each other in terms of prices in order to win orders, which led to the fact that ferromolybdenum companies faced thin profits. The stable supply of molybdenum raw materials in the future market would benefit the steady operation of ferromolybdenum companies.