Generally positive picture in China’s special alloys market

Influenced by high costs, ferromolybdenum market quotations in all markets in China have increased and traders are waiting for the transaction volume to grow at the higher levels. Meanwhile, China's ferrovanadium market is generally stable; however, as the international price increases and domestic demand expands, there may be a small uptick of price in the coming period.

Over the past week the domestic ferromolybdenum market has maintained its upward trend. Mainstream quotations of ferromolybdenum in Jinzhou are in the range of RMB 152,000-155,000/mt ($22,287-22,727/mt), up RMB 1,500/mt ($220/mt) compared to last week, while quotations of domestic ferrovanadium concentrate (45 percent) are at RMB 2,350/mt ($345/mt). The international market is also seeing a rebound. At present the price of bottled molybdenum oxide in Europe is $17.25-17.75/lb, with the European delivery price of 60 percent Mo at $42.5- 44.5/kg.

Influenced by costs, the Chinese ferromolybdenum market has maintained its upward trend. Domestic quotations of molybdenum concentrate are at RMB 2,350/mt. Based on this cost, domestic ferromolybdenum prices are at above RMB 155,000/mt ($22,727/mt). In the past week the market transaction situation has been getting better, with more enterprises purchasing; however, the purchase price is generally low at RMB 150,000-152,000/mt ($21,994-22,287/mt). Looking at the present market situation, the upward movement in the Chinese domestic ferromolybdenum market is not very strong, with a stable trend possibly in the offing.

Meanwhile, China's ferrovanadium market has been following a stable trend. Chinese ferrovanadium (50 percent) quotations are at RMB 104,000-107,000/mt ($15,249-15,689/mt); quotations of vanadium pentoxide price (98 percent flakes) quotation are at RMB 96,000-100,000/mt ($14,076-14,663/mt), up RMB 1,000-2,000/mt ($147-293/mt) week on week. International ferrovanadium prices indicate small increases, with the current vanadium pentoxide price at $7-7.5/lb, and market quotations of ferrovanadium at (V70-80) €32.5-34.5/kg

Generally speaking, the Chinese ferrovanadium market is stable but, as the international market increases, some Chinese enterprises are willing to raise their prices. The price of Pangang Group and some large ferrovanadium producers is still at $107,000/mt ($15,689/mt) ex-works. At the start of the past week, because domestic steelmakers were purchasing little, the market transaction situation was not good, and major traders were not optimistic about the future market while steelmakers' purchasing prices remained at low levels. However, after Wednesday, due to the rise in international prices, major domestic producers and traders have shown a willingness to increase prices. There are now more inquiries for vanadium pentoxide than before and quotations have increased a little. In the coming week it is expected that the ferrovanadium market will follow an upward trend.