Chinese ferromolybdenum prices rise slightly

Over the past week, the Chinese ferromolybdenum market has registered a rise in prices compared with the previous week. However, most market players are pessimistic on the outlook for demand in the coming period and consider that ferromolybdenum prices are likely to decline. Meanwhile, domestic market prices of ferrovanadium have generally been stable.

During the week in question, market prices of ferromolybdenum in China registered a slight price increase. Currently, the mainstream prices of ferromolybdenum in Jinzhou are at RMB 150,000-154,000/mt ($21,994-22,581/mt), up RMB 2,000/mt ($293/mt) while the market prices of molybdenum concentrate (45 percent) are at around RMB 2,300-2,350/mtu ($337-345/mtu). Meanwhile, European delivery prices of ferromolybdenum (60 percent Mo) are at $43-45/kg Mo, while prices of bottled molybdenum oxide in this market have increased to $17.4-17.8/lb.

Even though ferromolybdenum prices have risen slightly in the past week in China, market players are not optimistic about the future market prospects. Recently, transactions of domestic ferromolybdenum increased thanks to the pre-May Day purchases of some special steel enterprises, and market prices increased both before and after the May Day holiday. Currently, most market players are not optimistic regarding demand in the coming period and think that Chinese ferromolybdenum prices may decline. Meanwhile, availability of molybdenum concentrate in the local market is at relatively low levels, with low stock levels observed in the provinces of Shanxi and Jinlin, though stocks in Henan Province have increased.

On the other hand, the Chinese ferrovanadium market was basically stable during the past week. Domestic quotations of ferrovanadium (50 percent) are now in the range of RMB 106,000-110,000/mt ($15,249-16,129/mt), down RMB 3,000/mt ($440/mt), with vanadium pentoxide (98 percent flakes) standing at RMB 100,000/mt ($14,663/mt). Meanwhile, in the international market, quotations of ferrovanadium continued their rising trend, with vanadium pentoxide (98 percent flakes) at $7.3-7.7/lb, while market quotations of ferrovanadium (V70-80) are at €33.5-34.5/kg.

China's domestic ferrovanadium market is basically stable. Looking at the current market situation, the purchase prices of domestic steel mills and traders have remained almost unchanged, with steel mills' purchase prices at RMB 106,000-107,000/mt ($15,249-15,689/mt), and traders' purchase prices at RMB 107,000-108,000/mt ($15,689-15,836/mt), while quotations from most domestic ferrovanadium producers are around RMB 110,000/mt ($16,129/mt). In addition, the domestic ferrovanadium export market is showing some improvement, though the trading volume is small.