Over the past week China's domestic ferromolybdenum market again moved on a weak trend due to sluggish market demand and relatively high inventories. Meanwhile, commercial activity in the ferrovanadium market became a little more brisk, with a certain increase seen in the purchase prices of mills; however, the overall volume of purchases has remained quite low.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price($/mt) |
Ferromolybdenum | Mo60 | Jinzhou | 125,000 | -1,000 | 18,328 |
Ferrovanadium | V50 | Panzhihua | 99,000 | +1,000 | 14,516 |
The Chinese ferromolybdenum market was in general characterized by sluggish levels of activity in the past week. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou had declined by RMB 1,000/mt ($147/mt) to RMB 124,000-126,000/mt ($18,182-18,475/mt), while the market prices of molybdenum concentrate (45 percent) were at around RMB 1,900/mtu ($279/mtu). Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $26.5-28.5/kg Mo, while prices of molybdenum oxide in this market are at $10.6-11.6/lb.
In the context of the relatively high inventories of molybdenum alloys as well as the slack demand from the mills, market prices of ferromolybdenum in China again registered a moderate decline over the past week. It is heard that some domestic ferromolybdenum producers have recently chosen to halt their operations so as to allow the consumption of their abundant inventories, thus pushing the market back into a downward phase. In addition, as a result of the growing numbers of ferromolybdenum producers that have halted production, market demand for molybdenum concentrate has seen considerable shrinkage in recent days, thereby placing considerable pressure on molybdenum concentrate suppliers. Looking at the current situation, the Chinese molybdenum alloys market is unlikely to shake off its current softness in the short term.
Meanwhile, the Chinese ferrovanadium market has retained its minor rising trend during the past week. Domestic quotations of ferrovanadium (50 percent) have increased by RMB 1,000/mt ($147/mt) to the range of RMB 98,000-100,000/mt ($14,370-14,663/mt), with vanadium pentoxide (98 percent flakes) standing at RMB 90,000/mt ($13,196/mt). Meanwhile, in the international market, quotations of vanadium pentoxide (98 percent flakes) in Europe are at $6.7-7.5/lb, while market quotations of ferrovanadium (V70-80%) are at €22-24/kg.
Against the background of the climbing trend in the domestic ferrovanadium market, Chinese mills have in the past week raised their purchase price levels, which are now generally above the level of RMB 98,000/mt ($14,370/mt). However, while there was some slight increase in commercial activity, the overall volume purchased by mills has remained relatively low in recent days. Looking at the current situation, deals are being concluded below the level of RMB 100,000/mt ($14,663/mt), with hardly any deals concluded at higher levels. As regards the future, China's domestic ferrovanadium market is expected to remain on a steady upward curve; however, the increase range will not be so great as demand still appears slack.