- Ferro molybdenum hits three-year high
- Tsingshan raises 316L export surcharge by $200/t
SteelDaily: China’s 316L stainless steel market strengthened sharply this week as soaring molybdenum and ferro-molybdenum prices significantly increased production costs across the 316-series segment.
Market participants noted that tight mine supply and aggressive procurement by steelmakers pushed molybdenum concentrate prices above RMB 5,000/mtu ($736/t) in recent Chinese auctions, marking record-high levels. A Henan-based mine reportedly concluded bids for 45-50% grade molybdenum concentrate at around RMB 5,050/mtu ($744/t) cash basis, while additional tenders in Luoyang also reflected elevated pricing sentiment.
The sharp rise in raw material costs pushed ferro-molybdenum prices to around RMB 328,000/t ($48,340/t) on 13 May, the highest level since March 2023. Major Chinese steelmakers, including Tisco, Dongte, Shougang, and Angang, actively participated in recent procurement tenders, with bidding prices rising sharply over the past week.
As alloy costs surged, spot prices for 316L stainless steel in China reportedly increased by more than RMB 1,000/t within a single day following the Labour Day holiday period. Market participants stated that some producers temporarily halted fresh order bookings for 316L products to reassess rapidly rising production costs.
Meanwhile, Indonesia’s Tsingshan raised its 316L export surcharge by $200/t, taking the premium to nearly $2,100/t amid rising nickel and molybdenum costs. Industry participants noted that the sharp increase in alloy surcharges is adding pressure across global 316 stainless steel markets.
China’s 316 stainless steel scrap market also remained elevated, with Wenzhou-region prices assessed around RMB 21,600/t ($3,183/t) as of 13 May, supported by stronger alloy markets and tightening raw material availability.
Industry participants noted that the simultaneous rise in nickel and molybdenum prices is increasing cost pressure on 316-series and duplex stainless steel products at a much faster pace than downstream demand recovery.
Outlook
China’s 316L stainless steel market is expected to remain firm in the near term, supported by elevated ferro-molybdenum prices, tight concentrate availability, and strong alloy cost support. However, cautious downstream purchasing and pressure on end-user affordability may limit aggressive price increases and keep trading activity selective.
This article is published as part of a content-exchange agreement between SteelDaily and BigMint.
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