Chinese ferromolybdenum prices begin to pick up

Driven by the improved international market, the Chinese ferromolybdenum market began to see a recovery over the past week. Meanwhile, the domestic ferrovanadium market still seemed sluggish, but market players have gradually recovered their confidence and so the market is expected to move on a stable trend in the coming period.

Over the past week the Chinese ferromolybdenum market posted a mild price increase against the background of the recovery seen in commercial activity. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou were up sharply, by RMB 6,000/mt ($878/mt), to the range of RMB 105,000-110,000/mt ($15,373-16,129/mt), while the market prices of molybdenum concentrate (45 percent) were around RMB 1,600/mt ($234/mt), up RMB 100/mt ($15/mt) week on week.

Given the improved trading performance in the international molybdenum alloys market, prices of molybdenum oxide have climbed up accordingly, contributing to the sharp increase in China's import costs of molybdenum oxide and thereby pushing up the prices of domestic molybdenum concentrate to the level of RMB 1,600/mt ($234/mt). Meanwhile, with some mills and traders recently becoming confident as regards the future situation, market demand jumped up considerably and the order books of most ferromolybdenum producers were seen to fill up. In addition, the international market maintained a rising trend. Currently, in the European market prices of ferromolybdenum (60 percent Mo) are in the range of $22.5-23.5/kg Mo while prices of molybdenum oxide are around $8.5-9.5/kg Mo.

The Chinese vanadium alloys market retained its fluctuating trend at bottom levels over the past week. At present, domestic quotations of ferrovanadium (50 percent) are around RMB 85,000-90,000/mt ($12,463-13,177/mt), with vanadium pentoxide (98 percent flakes) staying at RMB 80,000-82,000/mt ($11,730-12,006/mt). Meanwhile, in the international market, the quotations of vanadium pentoxide (98 percent flakes) in Europe are down to $3.6-4.1/lb, while market quotations of ferrovanadium (V70-80%) are in the range of $17.8-19/kg V.

Last week, the Chinese ferrovanadium market remained at low levels, with mainstream deal prices concentrated in the range of RMB 87,000-88,000/mt ($12,738-12,884/mt). It is heard that some traders have begun to stock up materials in recent days, as most players are convinced that market prices are now near the bottom. According to the current situation, although the downstream demand is still soft, the improvement seen in finished steel has indicated the possibility of a slight rebound in the ferrovanadium market. Currently, purchase prices of ferrovanadium in the northeastern regions are around RMB 88,000/mt ($12,884/mt). As regards raw materials, prices of vanadium pentoxide have recently been moving on a stable trend at RMB 80,000/mt ($11,730/mt), but with no deals concluded.