Ferromolybdenum and ferrovanadium continue to rise in China

SteelOrbis Shanghai The Chinese ferromolybdenum and ferrovanadium markets showed stable movement over the past week, with an upward trend being predicted for future prices. At present, the mainstream market price of ferromolybdenum (Mo60) in Liaoning Province and Henan Province is at RMB 276,000-280,000/mt, while export quotations are around $66-67/kg Mo. The average market price of ferrovanadium (V50) in Panzhihua and Chengde has remained at RMB 125,000/mt, with export quotations of ferrovanadium (V80) standing at $37-38/kg V. Strong support is expected for both ferromolybdenum and ferrovanadium prices in the coming days. First of all, with regard to ferromolybdenum, due to the short supplies of domestic production raw materials (molybdenum concentrates), traders are still optimistic about the future and so are unlikely to lower their prices. In addition, international market prices continue to soar, and this is having a great impact on the Chinese market. The British Metal Guide reported on March 3 that quotations of ferromolybdenum in the European market are sharply up $5 to $73-78/kg Mo – evidence of the good condition of the international market. Thus, China's ferromolybdenum exports will remain at a relatively high level. Finally, due to the heavy snow in the Liaoning region recently, the production and sales of some enterprises have been affected, thus curbing the market trading volume. As regards ferrovanadium, the international market prices also seem to be steady. The present market price of ferrovanadium in the European market is around $37-38.5/kg V, up $1.5 or so week on week. Meanwhile, export quotations of Chinese V80 are at $37-38/kg V. Furthermore, in recent days, the inventories of the leading domestic producers are all at a low level. Some insiders in Panzhihua Steel and Chengde Steel indicate that although their quotations have not risen dramatically, market demand is very strong and, therefore, market prices are likely to ascend in the near future.