China’s ferromolybdenum market down slightly, ferrovanadium stable

Monday, 19 July 2010 13:56:27 (GMT+3)   |  
       

Over the past week in China's special alloys market, ferromolybdenum prices have declined slightly while ferrovanadium prices have remained generally neutral.

Product name

Specification

Place of origin

Price (RMB/mt)

Weekly change (RMB/mt)

Price ($/mt)

Weekly change ($/mt)

Ferromolybdenum

Mo60

Jinzhou

124,500

-500

18,437

-590

Ferrovanadium

V50

Panzhihua

92,000

-

13,569

-

Over the past week China's domestic ferromolybdenum market trended down slightly. The mainstream quotations in the market are at RMB 123,000-126,000/mt ($18,143-18,584/mt), down RMB 1,000/mt ($147/mt) week on week, while market quotations for domestic origin ferromolybdenum concentrate (45 percent grade) are currently at RMB 1,900/mtu ($280/mtu), with the upper end down RMB 50/mtu ($7/mtu) week on week. International ferromolybdenum prices have turned around slightly, with the current prices of bottled molybdenum oxide at $14-14.5/lb and with the European delivery prices of 60 percent Mo at $37-39/kg Mo.

Over the past week China's ferromolybdenum market has been characterized by sluggishness, with few deals concluded. Due to the mills' reduced purchase volumes as well as the strong prices of molybdenum ores, ferromolybdenum producers are under great pressure from raw material costs, while they also face difficulties in selling their materials. If calculated based on the price of molybdenum ores at RMB 1,900/mtu ($280/mtu), the production cost of ferromolybdenum may reach RMB 122,000/mt ($17,994/mt), which means that the producers may incur losses if they conclude deals at low prices. Looking at the current market situation, the future trend of the ferromolybdenum market will depend greatly on the movement of molybdenum ore prices.

On the other hand, the Chinese ferrovanadium market has trended sideways during the past week. Domestic quotations of ferrovanadium (50 percent) are now in the range of RMB 90,000-93,000/mt ($13,274-13,717/mt), with vanadium pentoxide (98 percent flakes) standing at RMB 82,000-85,000/mt ($12,094-12,538/mt), unchanged week on week. Meanwhile, in the international market, quotations of vanadium pentoxide (98 percent flakes) are at $6.5-7.1/lb, while market quotations of ferrovanadium (V70-80) are at €27.5-29/kg.

Currently, some mills have started to purchase ferrovanadium at a price of RMB 90,000/mt ($13,274/mt), although the tonnages in question are small. Looking at the current market situation, most ferrovanadium producers have maintained their selling price at RMB 92,000/mt ($13,569/mt). Owing to the production cutbacks and stoppages by the steel mills, market demand for ferrovanadium has been very quiet these days, and this may lead to a slight decline in ferrovanadium prices.


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