Considerable slide in Chinese ferrovanadium prices

In the wake of the previous market correction, the Chinese ferromolybdenum market registered a general stability over the past week. In recent days, many users have continued to favor imported molybdenum oxide due to its price advantage; moreover, against the sliding price levels of molybdenum oxide in the international market, import quotations of the said product are expected to go down further in the near future. Meanwhile, characterized by overall bearishness of demand in both domestic and global markets, ferrovanadium prices have continued their downward movement on the whole.

Over the past week the Chinese ferromolybdenum market posted an overall stability against a backdrop of unchanged levels of commercial activity. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou were in the range of RMB 105,000-108,000/mt ($15,373-15,813/mt), while the market prices of molybdenum concentrate (45 percent) were around RMB 1,550/mt ($227/mt), with the export quotations of Chinese ferromolybdenum staying at $22/kg Mo FOB, all neutral week on week.

Given the sluggish trading of domestic molybdenum concentrate, most mines chose to suspend production and stand aside from the market. Considering the relatively cheap price of imported molybdenum oxide, many users prefer to buy import materials instead of domestic supplies. Moreover, international prices of molybdenum oxide have continued to fall. Currently, spot prices of ferromolybdenum (60 percent Mo) are in the range of $21-23/kg Mo in the European market, while the prices of molybdenum oxide are around $8.3-8.7/kg Mo in the European market.

Against a background of insufficient demand, the Chinese vanadium alloys market remained on its sliding trend over the past week. At present, domestic quotations of ferrovanadium (50 percent) are around RMB 95,000-100,000/mt ($13,909-14,641/mt), sharply down, by RMB 5,000/mt ($732/mt) week on week, with vanadium pentoxide (98 percent flakes) declining to RMB 86,000-90,000/mt ($12,592-13,177/mt). Meanwhile, the international market has retained its softness. The market quotations of vanadium pentoxide (98 percent flakes) in Europe are at $4.5-5.5/lb, while market quotations of ferrovanadium (V70-80) are in the range of $22-23/kg V.

With the continuous bearishness in the domestic ferrovanadium demand, China's market prices have slipped rapidly down in recent days. At present, producers are operating only to meet orders already received or are maintaining halts to their production and concentrating on selling off stocks. Both producers and traders who hold relatively high inventories in hand prefer to adopt a wait-and-see stance for the time being. It is heard that a large-scale mill has announced their purchase price for ferrovanadium (50 percent) at RMB 95,000/mt ($13,909/mt).