Over the past week China's domestic ferromolybdenum market has continued to trend down due to weak demand and decreased purchase volumes and prices. Meanwhile, although still on a downward trend, the high cost of raw materials may help the ferrovanadium market to trend stable 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 | 129,000 | -2,000 | 19,027 | -295 |
Ferrovanadium | V50 | Panzhihua | 92,000 | -2,000 | 13,569 | -295 |
Over the past week China's domestic ferromolybdenum market softened further. The mainstream quotations in the market are at RMB 128,000-130,000/mt ($18,879-19,174/mt), down RMB 2,000/mt ($295/mt) week on week, while market quotations for domestic origin ferromolybdenum concentrate (45 percent grade) are currently at RMB 1,950/mtu ($288/mtu), down RMB 50/mtu ($7/mtu) week on week. International ferromolybdenum prices have declined again, with the current prices of bottled molybdenum oxide at $14.75-15.25/lb and with the European delivery prices of 60 percent Mo at $37-39/kg Mo.
Over the past week, China's ferromolybdenum market has observed decreased prices and reduced demand. Based on the current market situation, the domestic mills have decreased their demand for ferromolybdenum and are trying to bring down their purchase prices, in line with the situation of sufficient supplies of molybdenum ores, leading to the weakness in the ferromolybdenum market. Due to the continuous price decline in the steel markets, the special steel market has come under great pressure, leading directly to losses and production cuts at most special steel companies. In this context, the special steel companies have reduced their purchase volumes and are seeking some relief from cost pressure by lowering their purchase prices of raw materials such as ferromolybdenum. Meanwhile, with the increased output of domestic molybdenum ore, the sufficient supplies of these ores also provides room for downward movement of ferromolybdenum prices.
The Chinese ferrovanadium market has trended down during the past week. Domestic quotations of ferrovanadium (50 percent) are now in the range of RMB 90,000-93,000/mt ($13,274-13,717/mt), with vanadium pentoxide (98 percent flakes) standing at RMB 82,000-85,000/mt ($12,094-12,518/mt), both down RMB 2,000/mt ($295/mt) week on week. 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 €28.5-30/kg.
In the past week China's ferrovanadium market continued to trend downward, but at a slower rate. Currently, compared with the mainstream quotations of vanadium pentoxide at RMB 82,000-85,000/mt ($12,094-12,518/mt), the quotations of ferrovanadium in the range of RMB 90,000-93,000/mt ($13,274-13,717/mt) do not allow a profit margin. In this context, the high cost of raw material provides support for the ferrovanadium market to trend stable in the coming period.