Uptrend in Chinese ferromolybdenum and ferrovanadium markets

The Chinese domestic ferromolybdenum market has followed an upward trend in the past week, with prices up slightly. Meanwhile, the market has also registered an increased transaction volume on the back of improved demand. On the other hand, China's domestic ferrovanadium market has also started to edge up.

The mainstream quotations in the ferromolybdenum market in Jinzhou are at RMB 139,000-142,000/mt ($20,871-21,321/mt). Meanwhile, market quotations for domestic origin molybdenum concentrate (45 percent grade) are currently at RMB 2,050/mtu ($308/mtu). International ferromolybdenum prices have also rebounded, with the current prices of bottled molybdenum oxide at $16-16.3/lb and with the European delivery prices of 60 percent Mo at $41-42/kg Mo.

Over the past week, domestic steel mills have increased their purchase volumes of ferromolybdenum due to the decline in their inventories of ferromolybdenum, while international market prices have also moved up. These factors have contributed to the increase in China's ferromolybdenum market prices. The market in question has seen intensive purchase activity by domestic steel mills, with purchase prices in the range of RMB 136,000-140,000/mt ($20,513-21,116/mt) for tonnages over 2,500 mt. In addition, domestic traders have also increased their purchase volumes. However, the high levels of inventories held by domestic ferromolybdenum and molybdenum concentrate producers have had a limiting effect on the uptrend of ferromolybdenum prices.

At present, domestic quotations of ferrovanadium (50 percent) are at the range of RMB 94,000-95,000/mt ($14,178-14,329/mt), with the low end of the price range up RMB 1,000/mt ($151/mt) week on week and prices of vanadium pentoxide (98 percent flakes) standing at RMB 86,000-88,000/mt ($12,971-13,273/mt), up RMB 2,000/mt ($302/mt) week on week. Meanwhile, in Europe, the ferrovanadium market has continued to be stable. Quotations of vanadium pentoxide (98 percent flakes) have remained at $6.3-6.9/lb, while market quotations of ferrovanadium (V70-80) are at $28.5-30/kg.

China's ferrovanadium market has seen an improvement over the past week. Recently, some steel mills have entered the market for purchases, with increased transaction activity observed. As a result, in line with the increased inquiries from these steel mills observed in the market, both traders and ferrovanadium manufacturers have raised their offers slightly. However, these higher offers have not been accepted by the steel mills, whose current purchase prices have generally remained unchanged so far. Meanwhile, offers of vanadium pentoxide have increased to RMB 9,000/mt ($1,357/mt), though this price range appears unlikely to be accepted by ferrovanadium enterprises.