Over the past week China's domestic ferromolybdenum market has continued to trend down due to weak demand and decreases in both purchase volumes and purchase prices. Meanwhile, due to the high price of vanadium pentoxide as well as due to the production stoppages at ferrovanadium producers, the ferrovanadium market has trended sideways in recent days.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Ferromolybdenum | Mo60 | Jinzhou | 125,000 | -4,000 | 18,437 | -590 |
Ferrovanadium | V50 | Panzhihua | 92,000 | - | 13,569 | - |
Over the past week China's domestic ferromolybdenum market continued to trend down significantly. The mainstream quotations in the market are at RMB 124,000-126,000/mt ($18,289-18,584/mt), down RMB 4,000/mt ($590/mt) week on week, while market quotations for domestic origin ferromolybdenum concentrate (45 percent grade) are currently at RMB 1,900-1,950/mtu ($280-288/mtu), down RMB 50/mtu ($7/mtu) week on week. International ferromolybdenum prices have declined again, with the current prices of bottled molybdenum oxide at $13.75-14.25/lb and with the European delivery prices of 60 percent Mo at $36-38/kg Mo.
Over the past week, China's ferromolybdenum market has observed decreased prices and reduced demand. Based on the current market situation, the domestic mills have decreased their demand for ferromolybdenum, leading to the weakness in the ferromolybdenum market. It is heard that mills in the northeastern region have lowered their purchase prices for ferromolybdenum to RMB 123,000-125,000/mt ($18,142-18,437/mt), while large-sized producers and traders have offered their materials at RMB 126,000/mt ($18,564/mt). Looking at the present situation, China's domestic ferromolybdenum market is now closer to the bottom and is expected to follow a stable trend in the coming period.
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 €28-29.5/kg.
Since most mills have cut back production and lowered their purchase prices, market demand for ferrovanadium has been weak. However, support for ferrovanadium prices has been coming in particular from quotations of vanadium pentoxide, which have remained at RMB 82,000-85,000/mt ($12,094-12,538/mt). Due to the high level of raw material costs, some ferrovanadium producers have already chosen to halt production and just sell inventories instead.