Chinese ferrovanadium market still rises, ferromolybdenum still declines

During the past week China's special alloys market has followed the same trends as in the previous week. The ferromolybdenum market has continued to decline due to low demand and reduced prices for molybdenum concentrate. On the other hand, the ferrovanadium market has maintained its upward trend, as the prices of vanadium pentoxide are still high and as some steel plants started to buy in materials in order to replenish their stocks before the holiday season.

Over the past week China's domestic ferromolybdenum market has continued to decline. The mainstream quotations in the market in Jinzhou are at RMB 130,000-133,000/mt ($19,374-19,821/mt), down RMB 2,000/mt ($298/mt) week on week, while market quotations for domestic origin molybdenum concentrate (45 percent grade) are currently at RMB 1,950-2,000/mtu ($291-298/mtu), down RMB 50/mtu ($7/mtu) week on week. International ferromolybdenum prices have continued to decrease, with the current prices of bottled molybdenum oxide at $15.4-15.9/lb and with the European delivery prices of 60 percent Mo at $39-41/kg Mo.

Prices of molybdenum concentrate and ferromolybdenum in China have continued to decrease against the background of low domestic demand for ferromolybdenum. Domestic ferromolybdenum producers report that the number of inquiries has not been great and that purchase prices from steel mills have been too low for them to accept. Based on the current situation, the ferromolybdenum market may continue to decline in the coming period.

On the other hand, ferrovanadium prices in China have continued to rise. Domestic quotations of ferrovanadium (50 percent) are now in the range of RMB 98,000-99,000/mt ($14,605-14,754/mt), up RMB 1,000/mt ($149/mt), with prices of vanadium pentoxide (98 percent flakes) standing at RMB 90,000/mt ($13,413/mt), up RMB 1,000/mt ($149/mt). Meanwhile, in Europe, the ferrovanadium market has remained stable. Quotations of vanadium pentoxide (98 percent flakes) are at $6.8-7.1/lb, while market quotations of ferrovanadium (V70-80) are at €29.5-31.5/kg.

Strong domestic demand and high vanadium pentoxide prices caused ferrovanadium prices to continue to climb up in the domestic market in the past week. Although demand for ferrovanadium has been negatively affected by the national policy to save energy and reduce emissions, some steel mills have begun to increase their stocks before the approaching National Day holiday with a resulting positive influence on market demand. On the other hand, all offers for vanadium pentoxide are over RMB 90,000/mt ($13,413/mt). Looking at the current situation, it would appear that the domestic ferrovanadium market lacks the momentum to continue its rising trend. Due to the influence of the central government's policy aimed at saving energy and reducing emissions, demand for ferrovandium looks likely to decrease after the pre-holiday replenishing of inventories concludes.