HK Stock Market Move | The share price of CMOC Group Limited (03993) has risen by over 4%, and the industry is expected to enter a peak season of traditional demand. Institutions believe that the price of molybdenum is likely to start a new round of upward cycle.

CMOC Group Limited (03993) rose more than 4%. As of the time of writing, it increased by 4.43% to 6.02 Hong Kong dollars, with a trading volume of 98.6236 million Hong Kong dollars. Guolian believes that in recent years, factors such as the decline in copper-molybdenum associated ore grades, the lack of large new mines, and difficulties in development may make it difficult to increase overseas molybdenum supply. Although there are several new projects in China, due to the long construction cycle of molybdenum mines, production may only be released after 2026. It is estimated that the global demand for molybdenum in 2024-2026 will be 299,000/315,000/330,000 tons respectively, with supply-demand gaps of -21,000/-22,000/-27,000 tons. The bank continues to point out that as of the end of July 2024, the days of molybdenum concentrate producer inventory turnover decreased by 73.9% compared to the same period last year. Looking at the third quarter of 2024, the traditional peak season of "Golden September and Silver October" in the industry, combined with low inventory levels at the mining end, will give molybdenum prices greater upward elasticity, and molybdenum prices are expected to start a new round of upward cycle. Zhongtai previously released a research report stating that CMOC Group Limited's performance in the first half of the year met expectations. The company's Congo gold-copper-cobalt sector, Brazil niobium-phosphate sector, and IXM trading sector all showed solid operations and profits exceeding expectations. In the next 5 years, CMOC Group Limited plans to achieve the goal of "upgrading" to achieve annual production of 800,000-1,000,000 tons of copper, 90,000-100,000 tons of cobalt metal, 25,000-30,000 tons of molybdenum metal, and over 10,000 tons of niobium metal. The bank believes that the company will enter a period of capacity release at the right time in the future.