The Chinese domestic ferromolybdenum market has followed an upward trend in the past week. The ongoing rising costs of molybdenum concentrate and vanadium pentoxide have pushed up prices in both the domestic ferrovanadium and ferromolybdenum markets, though demand has been sluggish. With the approach of the Chinese New Year, market players are optmistic on the prospects for the domestic special alloys market in the coming period.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Ferromolybdenum | Mo60 | Jinzhou | 142,000 | +1,000 | 21,418 | +151 |
Ferrovanadium | V50 | Panzhihua | 95,000 | +500 | 14,329 | +75 |
The mainstream quotations in the ferromolybdenum market in Jinzhou are at RMB 141,000-145,000/mt ($21,267-21,870/mt), up by RMB 1,000/mt ($151/mt) week on week. Meanwhile, market quotations for domestic origin molybdenum concentrate (45 percent grade) are currently at RMB 2,080/mtu ($314/mtu), slightly up week on week. International ferromolybdenum prices have also rebounded, with the current prices of bottled molybdenum oxide at $16.5-16.9/lb and with the European delivery prices of 60 percent Mo at $42-43/kg Mo.
Over the past week, molybdenum concentrate prices have continued at high levels, and this has driven the increases in mainstream costs. Recently, purchase prices of steel mills for ferromolybdenum have been at RMB 138,000-140,000/mt ($20,814-21,116/mt) for cash payment. Looking at the current situation, the domestic molybdenum market may follow an upward trend in the coming period ahead of the Chinese New Year.
At present, domestic quotations of ferrovanadium (50 percent) are in the range of RMB 95,000/mt ($14,329/mt), with the low end of the price range up RMB 1,000/mt ($151/mt) again week on week and with prices of vanadium pentoxide (98 percent flakes) standing at RMB 87,000-89,000/mt ($13,122-13,424/mt), up RMB 1,000/mt ($151/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 $29-30.5/kg.
Most domestic vanadium pentoxide manufacturers lately announced that they would sell vanadium pentoxide at RMB 90,000/mt ($13,575/mt) at least, which pushed up offers from domestic ferrovanadium enterprises by RMB 1,000/mt ($151/mt). However, a poor transaction volume has been seen in the market following the increase. Looking at the current situation, domestic steel mills are not active in purchasing ferrovanadium at present. Thus, sluggish demand from the steel mills has slowed down the upward movement in ferrovanadium prices.