London, August 26th (Argus) - Supported by tight supply of molybdenum concentrate, rising production costs, and strong demand from Chinese steel mills, the prices of European molybdenum ferroalloy (FeMo) and oxidized molybdenum (MoOx) have climbed to their highest levels since March 2023.
Argus evaluated the European molybdenum ferroalloy price for delivery at the Rotterdam warehouse at $75.90 - $76.50 per kilogram on August 25th. It has risen by 32% since the beginning of the year. The latest assessment price of oxidized molybdenum is $33.40 - $33.55 per pound for unadulterated delivery at Rotterdam, and it has increased by 33% since the beginning of 2026.
Supply tightness supports the rally
The main driving force behind this rally is the increasingly tight supply of molybdenum concentrate, the main raw material in the molybdenum supply chain. Higher concentrate costs have increased the production costs of smelters, which has supported the price of oxidized molybdenum and further transmitted to the price of molybdenum ferroalloy.
Argus evaluated the price of 45% grade molybdenum concentrate delivered at the Chinese factory with tax and duties at 5,425 yuan per tonne (807 US dollars per tonne) yesterday. It has risen by approximately 34% since the beginning of the year.
Market participants in China believe that the price increase is mainly attributed to the decline in the ore grade of existing mines, which limits domestic concentrate production.
The supply pressure is not limited to China. Most of the molybdenum in the world is a by-product of copper mining, which means the supply of molybdenum is closely related to copper production and recovery rates.
Latin America is one of the main molybdenum-producing regions. The decline in copper production and the reduction in the recovery rate of by-products in this region have put pressure on molybdenum supply throughout the year.
