Overall stability in Chinese special alloys market

Over the past week the Chinese special alloys market was basically stable. The increased prices of ferromolybdenum and ferrovanadium in the international market failed to spark a rise in domestic quotations in China. At present, China’s domestic ferromolybdenum and ferrovanadium markets are experiencing low demand and may observe a slight fall in the coming period.

During the past week, market prices of ferromolybdenum in China have remained at unchanged levels. Currently, the mainstream prices of ferromolybdenum in Jinzhou are still at RMB 155,000-160,000/mt ($22,727-23,460/mt), while the market prices of molybdenum concentrate (45 percent) are at RMB 2,300/mtu ($337/mtu). Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $43.50-45.5/kg Mo, while prices of bottled molybdenum oxide in this market have climbed up to $18-18.5/lb.

Although prices have risen in the international market, the Chinese ferromolybdenum market has basically followed a stable trend. At present, trading activity in the domestic market is weak, with most Chinese steel mills holding back from making purchases. Given the slack demand in the current market, China’s ferromolybdenum market might see a slight fall in the near future; meanwhile, some small scale ferromolybdenum producers have lowered their ex-factory prices.

The Chinese ferrovanadium market has also indicated unchanged price levels over the past week. Domestic quotations of ferrovanadium (50 percent) are still in the range of RMB 110,000-115,000/mt ($16,129-16,862/mt), with vanadium pentoxide (98 percent flakes) standing at RMB 100,000-105,000/mt ($14,663-15,396/mt). Meanwhile, in the international market, quotations of ferrovanadium kept rising with vanadium pentoxide (98 percent flakes) now at $6.8-7.3/lb, while market quotations of ferrovanadium (V70-80) are at €30-33.5/kg.

Despite the slack trading activity in China’s domestic ferrovanadium market, overall quotations basically remained stable at their high levels due to high costs. Currently, prices of ferrovanadium (50 percent) are still at RMB 115,000/mt from large scale manufacturers: meanwhile, small scale enterprises have lowered their ex-factory prices in order to boost trading activity, but without success. In addition, domestic quotations of vanadium pentoxide also generally maintained their stability at high price levels, in a context of weak demand due to the sluggishness in the local ferrovanadium market.