In the past week, the Chinese ferromolybdenum market has maintained its downward trend of the previous week, with prices in the market down slightly. There is still a lack of optimism on the prospects for the market in the coming period due to the ongoing sluggishness of transaction activity. On the other hand, the domestic ferrovanadium market has been relatively stable during the week in question, while the purchase prices from domestic steel mills have increased compared to the previous period.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Ferromolybdenum | Mo60 | Jinzhou | 149,000 | -2,000 | 22,679 | -304 |
Ferrovanadium | V50 | Panzhihua | 100,500 | - | 15,297 | - |
Ferromolybdenum prices drop due to low market demand
Mainstream quotations in the ferromolybdenum market in Jinzhou are at RMB 148,000-150,000/mt ($22,527-23,831/mt), down RMB 2,000/mt ($304/mt) week on week. Meanwhile, market quotations for domestic origin molybdenum concentrate (45 percent grade) are currently at RMB 2,150-2,200/mtu ($327-335/mtu), slightly down on week-on-week basis.
Market demand for ferromolybdenum has remained on the low side. Only a few large-scale steel mills have entered the market for purchases, with their purchase prices at low levels, thus exerting a negative impact on spot prices. In addition, molybdenum concentrate has seen reduced consumption and the inventories held by molybdenum concentrate enterprises have increased, with sluggish transaction activity reported. Looking at the current situation, the ferromolybdenum market may continue its weak trend, as domestic steel mills are faced with low profitability and thus are reluctant to accept high ferromolybdenum prices.
Transaction activity still sluggish in Chinese ferrovanadium market
At present, domestic quotations of ferrovanadium (50 percent) in China are in the range of RMB 100,000-102,000/mt ($15,221-15,525/mt), unchanged week on week, while prices of vanadium pentoxide (98 percent flakes) in China are standing at RMB 92,000-94,000/mt ($14,003-14,307/mt), up another RMB 1,000 ($152/mt) week on week. Meanwhile, in Europe, the ferrovanadium market has remained unchanged. Quotations of vanadium pentoxide (98 percent flakes) in Europe are at $6.85-7.45/lb, while market quotations of ferrovanadium (V70-80) have remained at $30.5-31.75/kg.
In the past week, the transaction volume in the domestic ferrovanadium market has lacked strength. The purchase prices from domestic steel mills have exceeded RMB 100,000/mt ($15,221/mt) in general, providing support for current mainstream offers. Meanwhile, domestic traders and distributors have been waiting for the market to indicate further signs of stability before they reenter the market. Also, at present domestic ferrovanadium manufacturers are reluctant to purchase vanadium pentoxide at high levels from vanadium pentoxide manufacturers, while the vanadium pentoxide manufacturers are not willing to reduce their ex-mill prices.