China’s ferromolybdenum prices drop down further

In the past week the Chinese special alloys market has seen contrasting trends. The local ferromolybdenum market is currently depressed and prices are maintaining their downward trend. On the other hand, local ferrovanadium market prices have been indicating increases. Although ferrovanadium producers express confidence, the current demand situation is not very satisfactory.

China's dometic ferromolybdenum market has softened over the past week. The mainstream quotation in the market is RMB 150,000/mt ($21,994/mt), down RMB 400/mt ($58.7/mt) week on week, while market quotations for domestic origin ferromolybdenum concentrate (45 percent grade) are in the range of RMB 2,300-2,350/mt ($337-345/mt). International prices are stable, with the current prices of bottled molybdenum oxide at $17 - 17.5/lb and with the European delivery prices of 60 percent Mo at $42.5- 44.5/kg

In the domestic ferromolybdenum market, steelmakers' reduced purchase volume and their low procurement prices are the main factors behind the market downturn. Having purchased significant quantities in the previous two weeks, a strong drop has been seen in the overall ferromolybdenum purchase volume from Chinese domestic steelmakers. Chinese ferromolybdenum producers have lately reported that steelmakers' purchases have almost ground to a halt and that most transactions are from traders. Traders' purchase prices are close to the steelmakers' purchase prices, with the result that general market prices have decreased. The price of ferromolybdenum concentrate has also weakened.

In the past week, prices in China's ferrovanadium market have increased slightly. At present, quotations of ferrovanadium (50 percent) are at RMB 106,000-110,000/mt ($15,540-16,129/mt), with quotations of vanadium pentoxide (98 percent flakes) at RMB 100,000/mt ($14,663/mt), up RMB 2,000/mt ($293/mt) week on week. International ferrovanadium prices are stable; the present vanadium pentoxide price is $7-7.5/lb, with market quotations of ferrovanadium at (V70-80) €33-34.5/kg

In the Chinese ferrovanadium market, most traders have been maintaining a wait-and-see attitude. The increase in the purchase prices of domestic steelmakers has pushed prices up. Domestic steelmakers' ferrovanadium purchase prices are at RMB 105,000/mt ($15,396/mt), up RMB 2,000/mt ($293.26/mt) week on week. Influenced by steelmakers' increased purchasing prices, international sellers have raised their ferrovanadium prices: big ferrovanadium producers in Europe are currently quoting at RMB 110,000 ($16,129/mt) in their domestic market.