Due to the price increases of raw material, quotations of ferromolybdenum observed a slight increase in the local Chinese market but still with little improvement seen on the demand side. Meanwhile, the Chinese ferrovanadium market is expected to continue its downward trend due to the weakness in demand.
Product Name |
Specification |
Place of Origin |
Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Ferromolybdenum |
Mo60 |
Jinzhou |
152,000 |
+4,000 |
22,287 |
+587 |
Ferrovanadium |
V50 |
Panzhihua |
109,000 |
-1,000 |
15,982 |
-147 |
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 4,000/mt ($583/mt) while the market prices of molybdenum concentrate (45 percent) are around RMB 2,300/mtu ($337/mtu), up RMB 50/mt compared with the previous week. Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $42.50-44/kg Mo, while prices of bottled molybdenum oxide in this market have increased to $17.25-17.75/lb.
The Chinese ferromolybdenum market has seen some improvement during the past week. Currently, quotations of molybdenum are around RMB 2,300/mt ($337/mt), which means that the ex-works price for ferromolybdenum will reach about RMB 152,000/mt ($22,287/mt). Although the mills have started to purchase, so far the purchase volume is not great. In any case, mills' inventories of ferromolybdenum are at relatively sufficient levels. At present, a wait-and-see attitude prevails in the ferromolybdenum market, exerting a braking effect on further rising tendencies in the ferromolybdenum price.
On the other hand, the Chinese ferrovanadium market maintained its weak trend over the past week. Domestic quotations of ferrovanadium (50 percent) are now in the range of RMB 107,000-110,000/mt ($15,689-16,129/mt), down RMB 1,000/mt ($147/mt) week on week, with vanadium pentoxide (98 percent flakes) decreasing by RMB 5,000/mt to RMB 95,000-100,000/mt ($13,930-14,663/mt). Meanwhile, in the international market, quotations of ferrovanadium have remained stable with vanadium pentoxide (98 percent flakes) at $7-7.5/lb, while market quotations of ferrovanadium (V70-80) are at €32-34/kg.
Due to the sluggishness in market activities, currently domestic ferrovanadium producers have reduced their offers to RMB 108,000-109,000/mt. Meanwhile, it is heard that the average cost of vanadium pentoxide (98 percent flakes) in stock for most ferrovanadium producers is at RMB 100,000/mt ($14,663/mt) and above, which means that a significant price decrease is unlikely to occur in the ferrovanadium market in the near future. However, with offers of vanadium pentoxide decreasing to RMB 95,000/mt ($13,930/mt), it is expected that quotations of ferrovanadium will go down slightly in the coming period.
Currently, overall demand is becoming weaker in China's ferrovanadium market, mainly due to the inactivity of domestic mills in relation to purchases and also owing to the declining trend of the ferrovanadium price.