SteelOrbis Shanghai
Over the past week the Chinese ferromolybdenum market continued to rise, but was still accompanied by sluggish levels of commercial activity. According to the current situation, the tight supply of raw materials for ferromolybdenum production is expected to support the rising price trend in the short run; meanwhile, the market quotation of ferrovanadium registered a slight upward movement against the background of the recovering international market.
On August 27, the mainstream price of ferromolybdenum in Jingzhou was around RMB 298,000/mt ($39,418/mt), while the average market price in Henan Province was up RMB 2,000/mt ($265/mt) to RMB 296,000/mt ($39,153/mt). Meanwhile, the mainstream price of ferrovanadium is at RMB 128,000-130,000/mt ($16,931-17,196/mt) or so, while the ex-factory price of Panzhihua Steel and Chengde Steel stands at RMB 130,000/mt ($17,196/mt).
As regards molybdenum ore, the domestic market continued its previous trend throughout the past week. Some ferromolybdenum producers increased their molybdenum ore purchases moderately, thus effectively boosting up ore prices, which had a knock-on effect on ferromolybdenum prices. Since the present prices of ferromolybdenum are close to RMB 300,000/mt ($39,683/mt), most buyers have adopted a wait-and-see stance concerning the future price trend.
Due to the supply shortage in molybdenum concentrate ore, the mainstream prices in the domestic market have reached RMB 4,350-4,400/mtu ($575-582/mtu). According to some market players, the continuous rainy weather in Ruanchuan, Henan Province, caused blocked transportation, which is the main reason for the climbing quotation.
With regard to ferrovanadium, the domestic market showed a continuous increase in recent days. The high production costs and expanding market demand are the two main reasons for the upward market tendency. At present, the market quotation of vanadium pentoxide (98-percent) is around RMB 116,000-118,000/mt ($15,344-15,608/mt), up RMB 2,000/mt ($658/mt) compared with the previous week.
Furthermore, the brisk finished steel market also pushed up the prices of vanadium alloy products, and this stimulated the usage of ferrovanadium to a certain extent.
For the next week, the domestic ferromolybdenum market is expected to continue its slight upward movement, while ferrovanadium is due to remain stable on the whole.
In July, China's ferroalloy exports totaled 274,600 mt, down 3,600 mt or 1.29 percent month on month and up 31,300 mt or 12.86 percent year on year. From January to July, the cumulative exports reached 1.8689 million mt, up 56.03 percent year on year. Meanwhile, the imports for the period in question totaled 129,500 mt, down 12,600 mt or 8.87 percent month on month and up 92,000 mt or 245.33 percent year on year. The January-July imports amounted to 866,900 mt, up 223.39 percent compared with the same period last year.