Chinese special alloys market maintains rising trend

During the past week China's domestic special alloys market continued its upward trend. The domestic ferromolybdenum market registered a greatly improved trading performance with demand indicating a strong trend again; on the other hand, soaring price levels have been observed in the international ferromolybdenum market. Meanwhile, domestic ferrovanadium prices moved steadily up, mainly boosted by raw material prices.

Over the past week the Chinese ferromolybdenum market still retained its ascending movement. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou were up by RMB 5,000/mt ($732/mt) to the range of RMB 140,000-145,000/mt ($20,498-21,230/mt), while the market prices of molybdenum concentrate (45 percent) were around RMB 2,050-2,100/mtu ($300-307/mtu). Meanwhile, the European market also continued its upward trend. European market prices of ferromolybdenum (60 percent Mo) are up by $4/kg Mo week on week to $34-35.5/kg Mo, while prices of molybdenum oxide in this market are at $14.5-15.5/lb, a climb of $2/lb week on week.

Following the consumption of their ferromolybdenum inventories, Chinese mills began to increase their purchases in recent days, leading to a continuous growth in the trading volume of ferromolybdenum, which may help push up ferromolybdenum prices further. At present, domestic mills' purchase prices for ferromolybdenum are around RMB 140,000/mt ($20,498/mt). In addition, still characterized by tight supply, prices of molybdenum concentrate in Henan Province and Liaoning Province have continued their upward movement, marking a weekly increase of nearly RMB 100/mt ($15/mt). In recent days, ferromolybdenum prices in the international market have surged strongly, but are expected to see a certain correction according to some traders.

The Chinese ferrovanadium market rose steadily over the past week. Domestic quotations of ferrovanadium (50 percent) have risen RMB 2,000/mt ($293/mt) to the range of RMB 105,000-108,000/mt ($15,373-15,813/mt), with vanadium pentoxide (98 percent flakes) up by RMB 1,000/mt ($146/mt) to RMB 98,000/mt ($14,348/mt). Meanwhile, in the international market, quotations of vanadium pentoxide (98 percent flakes) in Europe are up by approximately $1/lb to $6-7/lb, while market quotations of ferrovanadium (V70-80%) are at €28.5-29.5/kg.

With improved commercial activities, China's domestic ferrovanadium market observed increased inquiries in recent days. Currently, the continuous rise in raw material prices is still the main factor pushing up ferrovanadium prices. In June, China's ferrovanadium exports totaled 145 mt, with the main export destinations including South Korea, Taiwan, and the Netherlands; meanwhile, vanadium pentoxide imports in June reached 322 mt, up 79 percent month on month.