Quotations of ferromolybdenum have observed a slight increase in the local Chinese market over the past week but still with little improvement seen on the demand side. Meanwhile, the Chinese ferrovanadium market is expected to continue its softening trend and appears unlikely to turn around in the near future.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Ferromolybdenum | Mo60 | Jinzhou | 152,500 | +500 | 22,361 | +73 |
Ferrovanadium | V50 | Panzhihua | 106,000 | -3,000 | 15,423 | -440 |
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 151,000-154,000/mt ($22,141-22,581/mt), up RMB 500/mt ($587/mt) while the market prices of molybdenum concentrate (45 percent) are around RMB 2,350/mtu ($345/mtu), up RMB 50/mt compared with the previous week. Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $43.20-45/kg Mo, while prices of bottled molybdenum oxide in this market have increased to $17.75-18.25/lb.
Although the current trend for domestic ferromolybdenum prices remains sideways to slightly up, market players are not optimistic on the prospects for the market in the coming period. Currently, some light trading is observed in the market with some deals concluded at a price below RMB 150,000/mt ($21,994/mt). Meanwhile, mills' relatively high inventory levels have also exerted a braking effect on further rising tendencies in the ferromolybdenum price. With the continuous price increase in molybdenum ore, molybdenum miners have been relucant to sell their material at a low price, while ferromolybdenum producers are afraid of making purchases at high levels, thus resulting in a wait-and-see atmosphere in the ferromolybdenum market.
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 104,000-107,000/mt ($15,249-15,689/mt), down RMB 3,000/mt ($440/mt) week on week, with vanadium pentoxide (98 percent flakes) decreasing to RMB 95,000-98,000/mt ($13,930-14,340/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.
Since the beginning of April, the domestic ferrovanadium market has maintained its weak trend, with declining quotations and light trading. In the week in question, some mills started to make purchases and tried to force prices down since supplies are relatively plentiful. Currently, the average purchase price for most steelmakers is at RMB 103,000-105,000/mt ($15,103-15,396/mt). Meanwhile, with the mainstream offers of vanadium pentoxide decreasing to RMB 95,000-96,000/mt ($13,930-14,076/mt), it is expected that declining trend in China's domestic ferrovanadium market will continue in the near future.