Driven down by the low prices of imported materials, China's domestic ferromolybdenum prices continued to slip over the past week against the background of sluggish market demand. China's ferromolybdenum products have lost competitiveness in the international market, totaling only 6 mt of exports in January.
Product name |
Specification |
Place of origin |
Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Ferromolybdenum |
Mo60 |
Jinzhou |
106,000 |
-6,000 |
15,520 |
Ferrovanadium |
V50 |
Panzhihua |
104,000 |
-1,000 |
15,227 |
China's domestic ferromolybdenum market remained on its previous downward trend over the past week. At present, the mainstream prices of ferromolybdenum in Jingzhou have declined RMB 5,000/mt ($732/mt) to RMB 105,000-108,000/mt ($15,373-15,813/mt), while the market prices of molybdenum concentrate (45 percent) are around RMB 1,550/mt ($227/mt), with the recent export quotations of Chinese ferromolybdenum staying at $22/kg Mo FOB.
China's ferromolybdenum exports registered a rapid shrinkage in January. In addition, under pressure from low-price imported materials, some northeastern-based ferromolybdenum producers again reduced their quotations in the past week. Moreover, given the substantial imported molybdenum concentrate supplies, Chinese ferromolybdenum producers are now all using imported materials, and most domestic molybdenum concentrate producers have maintained their production halts.
According to the latest statistics released by the customs authorities, China's ferromolybdenum exports for January 2009 totaled just 6 mt. In the first month of 2008, this figure stood at 1,068 mt, later shrinking to 99.5 mt in November and rebounding to 229.6 mt in December 2008.
The Chinese vanadium alloys market has been driven down by the continuous fall seen in the international vanadium alloys market over the past week. At present, domestic quotations of ferrovanadium (50 percent) are around RMB 103,000-106,000/mt ($15,081-15,520/mt), with vanadium pentoxide (98 percent flakes) declining to RMB 95,000/mt ($14,641/mt). The market quotations of vanadium pentoxide (98 percent flakes) in Europe are down to $5-6/lb, while market quotations of ferrovanadium (V70-80) are in the range of $22.5-23.5/kg V.
Against the continuing bearishness in the domestic finished steel market, most mills have curbed their purchases of ferrovanadium. Meanwhile, traders are generally pessimistic as regards the future. As a result, throughout the past week the Chinese vanadium alloys market posted poor levels of trading activity, accompanied by a continuous slide in market prices.