Transactions in ferromolybdenum market slowed down

During the past week, the upward trend in China's special alloy market slowed down, with a slight fall observed after the previous increase in the ferromolybdenum market, and the transactions have begun to slow down. While the ferrovanadium market has maintained the upward trend at present as the raw material supply of vanadium pentoxide etc is tight, thus the price of it is at a high level, it is hard to continue the increase because of the unimproved demand.

Over the past week China's domestic ferromolybdenum market saw an overall sideways. The mainstream quotations in the market in Jinzhou are at RMB 135,000-137,000/mt ($19,941-20,236/mt), changed slightly week on week, while market quotations for domestic origin molybdenum concentrate (45 percent grade) are currently at RMB 2,050/mtu ($303/mtu), down RMB 50/mtu ($7/mtu) week on week. International ferromolybdenum prices have increased slightly, with the current prices of bottled molybdenum oxide at $15.2-15.7/lb and with the European delivery prices of 60 percent Mo at $39-40.5/kg Mo.

Ferromolybdenum prices in the week in question have been back to the level in the previous week. The tight supply of molybdenum concentrate and its increased price level contributed to the price of ferromolybdenum climbing to RMB 136,000-140,000/mt ($20,089-20,679/mt). While the perfect transactions and the firm market have not kept for a long period, the prices have begun to decrease due to the reduced purchase by domestic mills as well as by traders. According to the current situation, ferromolybdenum market will be characterized by slackness, and the prices may fall to below RMB 135,000/mt ($19,941/mt).

On the other hand, Chinese ferrovanadium prices up slightly again during the past week. Domestic quotations of ferrovanadium (50 percent) are now in the range of RMB 92,000-94,000/mt ($13,589-13,885/mt), up RMB 500-1,000/mt ($74-148/mt),with vanadium pentoxide (98 percent flakes) standing at RMB 85,000-87,000/mt ($12,555-12,851/mt), but some enterprises raise their prices of it by RMB 2,000/mt ($295/mt). Meanwhile, in the international market, quotations of vanadium pentoxide (98 percent flakes) are at $6.5-7.1/lb, while market quotations of ferrovanadium (V70-80) are at €27.5-29/kg.

In recent days, the inquiries of ferrovanadium have increased, and the deal prices of the product have generally up by around RMB 1,000/mt ($148/mt). Meanwhile, the resource supply of vanadium pentoxide are tight, with some vanadium pentoxide enterprises' orders have spread to September, and the quotations have climbed up to RMB 87,000/mt ($12,851/mt). Looking at the current market situation, the increased prices of ferrovanadium are supported by the cost of raw materials. While, on the back of the continuous increase of vanadium alloy, some market players are not optimistic towards the market in the future. Because the demand in the downstream market has not improved clearly, it will be difficult for the price increases to be accepted. The market might trend stable during August.