China's domestic ferromolybdenum market has continued to move up over the past week due to high prices of molybdenum concentrate and increased prices in the international market. On the other hand, the domestic ferrovanadium market has indicated weakness in a context of sluggish demand and plentiful stocks held by manufacturers.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Ferromolybdenum | Mo60 | Jinzhou | 137,000 | +3,000 | 20,540 | +450 |
Ferrovanadium | V50 | Panzhihua | 98,000 | -1,000 | 14,693 | -150 |
Over the past week China's domestic ferromolybdenum market prices have continued to move up. The mainstream quotations in the market in Jinzhou are at RMB 135,000-138,000/mt ($20,240-20,690/mt), up RMB 3000/mt ($450/mt) week on week. Meanwhile, market quotations for domestic origin molybdenum concentrate (45 percent grade) are currently at RMB 2,000-2,050/mtu ($300-307/mtu), up RMB 50/mt ($7.5/mt) week on week. International ferromolybdenum prices have also moved up, with the current prices of bottled molybdenum oxide at $15.1-15.5/lb and with the European delivery prices of 60 percent Mo at $39-40/kg Mo.
The increases in international ferromolybdenum prices and higher molybdenum concentrate prices have caused ferromolybdenum prices in China to move up. Demand from the international market is reported to be on the rise. Local European delivery prices of 60 percent Mo are at $39-40/kg Mo. Looking at the current market situation, most insiders think that the price of RMB 2,000/mt ($300/mt) is the breakeven point for molybdenum concentrate enterprises. Thus, these enterprises prefer offers above RMB 2,000/mt ($300/mt).
Currently, domestic quotations of ferrovanadium (50 percent) are in the range of RMB 96,000-10,000/mt ($14,393-14,993/mt), down RMB 2,000/mt ($300/mt) week on week, with prices of vanadium pentoxide (98 percent flakes) standing at RMB 88,000-90,000/mt ($13,193-13,493/mt), down RMB 2,000/mt ($300/mt) compared to the previous week. Meanwhile, in Europe, the ferrovanadium market has also followed a downward trend. Quotations of vanadium pentoxide (98 percent flakes) are at $6.8-7.1/lb, while market quotations of ferrovanadium (V70-80) are at $29.75-31/kg.
China's ferrovanadium market has declined over the past week, with a low transaction volume recorded in the market. Many producers prefer to sell from their plentiful stocks and some traders expect that quotations of ferrovanadium (50 percent) will drop below RMB 95,000/mt ($14,243/mt). Quotations of vanadium pentoxide have also declined slightly, but they still remain at high levels in general. Purchases by ferrovanadium producers have started to decline and so the price of vanadium pentoxide is likely to trend downward in the coming period.