Slight fall observed in Chinese ferromolybdenum market

Over the past week, the Chinese ferromolybdenum market moved on a slightly weak trend, while the local ferrovanadium market was basically stable. Looking at the current situation, demand in China's special alloys market has been rather slack while there has been oversupply of molybdenum and vanadium alloys.

During the past week, market prices of ferromolybdenum in China have registered a slight decrease. Currently, the mainstream prices of ferromolybdenum in Jinzhou are at RMB 153,000-157,000/mt ($22,434-23,021/mt), while the market prices of molybdenum concentrate (45 percent) are at the range of RMB 2,250-2,300/mtu ($330-337/mtu). Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $40.50-42/kg Mo, while prices of bottled molybdenum oxide in this market have fallen to $16.5-17.5/lb.

Both domestic and international ferromolybdenum markets have seen a weak trend during the past week. At present, demand from the domestic steel mills is quite weak with a situation of considerable oversupply seen in the ferromolybdenum market. With the resumption of production, current market supplies are increasing, but actual deals are relatively few. According to the current situation, the domestic market price of ferromolybdenum still has some room for further decrease and its bottom level is not yet in sight. Meanwhile, the dramatic fall in the international market has had a significant effect on the Chinese market; most local market players have changed their minds and now think that the domestic ferromolybdenum market is likely to remain weak in the coming period.

The Chinese ferrovanadium market has maintained its stability 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 $7-7.5/lb, while market quotations of ferrovanadium (V70-80) are at €31-33.5/kg.

Even though prices in the domestic ferrovanadium market have remained stable, market demand has been relatively low, with fewer purchases from the steel mills and traders not active in purchases. At the same time, domestic purchase prices have fallen to RMB 110,000/mt ($16,129/mt), while the continuing rise in the international market has helped support the price in the Chinese market.