China’s molybdenum prices hit a 15-year high at the end of 2022, and the price continues increasing due to growing demand and tighter supply caused by the Russia-Ukraine war and China’s production cuts. Therefore, the high cost was reflected on the surcharge of 316 stainless steel, which surged by NT$12,000/ton in January this year.

China's demand for molybdenum-containing special steel increased significantly last year, while the new production capacity of molybdenum concentrate was delayed. The prices continued climbing, and social stocks have been exhausted. China’s molybdenum price has risen frequently since last August, and the upward trend is continuing.

Market participants said the molybdenum price in China has been at a high level, coupled with difficult procurement, so stainless steel mills are likely to hike grade 316 prices for February again.