In the context of the limited increase seen in market demand, China's domestic ferromolybdenum market received most of its support from rising cost levels over the past week, with quotations remaining on a positive trend. Meanwhile, against a background of bearish demand the Chinese ferrovanadium market has continued it minor decline, which has been mainly due to the reductions made by mills to their purchase prices.
Product name |
Specification |
Place of origin |
Price (RMB/mt) |
Weekly change (RMB/mt) |
Price($/mt) |
Ferromolybdenum |
Mo60 |
Jinzhou |
151,000 |
3,000 |
22,141 |
Ferrovanadium |
V50 |
Panzhihua |
109,000 |
-5,000 |
15,982 |
Over the past week the Chinese ferromolybdenum market has registered a gradual increase. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou were up by RMB 3,000/mt ($440/mt) to the range of RMB 148,000-152,000/mt ($21,701-22,288/mt), while the market prices of molybdenum concentrate (45 percent) had risen RMB 100/mtu ($15/mtu) to RMB 2,300-2,350/mtu ($337-344/mtu). Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are down to $31.25-33/kg Mo, while prices of molybdenum oxide in this market are at $13.5-14.8/lb.
Ferromolybdenum prices in the domestic market retained their mild upward movement in the past week, but the market was still characterized by flat levels of commercial activity. During mid-September (September 11-20) molybdenum concentrate producers based in Henan Province and Liaoning Province made an overall hike of RMB 100/mt ($15/mt) to their ex-factory prices, which was reflected as a rise of RMB 5,000/mt ($733/mt) in ferromolybdenum prices. In this connection, the molybdenum alloys market has been boosted considerably by increased costs in recent days. Although molybdenum concentrate prices have been propping up the ferromolybdenum market, no obvious improvement has been observed in market demand, with special steel enterprises remaining cautious as regards purchases. Generally speaking, there does not appear to be much rising momentum available for the ferromolybdenuom market in the short term.
Meanwhile, the Chinese ferrovanadium market has registered a minor decline over the past week. Domestic quotations of ferrovanadium (50 percent) have declined RMB 5,000/mt ($733/mt) to the range of RMB 106,000-110,000/mt ($15,543-16,129/mt), with vanadium pentoxide (98 percent flakes) down RMB 5,000/mt ($733/mt) to RMB 100,000/mt ($14,662/mt). Meanwhile, in the international market, quotations of vanadium pentoxide (98 percent flakes) in Europe are at $7-7.6/lb, while market quotations of ferrovanadium (V70-80%) are down to €31.5-33.5/kg.
Market prices of vanadium alloys in China have continued their minor decline in the past week. Some mills have released purchase prices for ferrovanadium V50 in the range of RMB 105,000-108,000/mt ($15,396-15,836/mt), leading to reductions in market quotations by various traders. At present, market quotations are generally below the level of RMB 110,000/mt ($16,129/mt), while some market players report a limited trading volume. Considering the sliding movement of prices in actual deals, ferrovanadium producers have not dared to make purchases in significant quantity in recent days. Moreover, some domestic vanadium pentoxide producers have indicated the receipt of some inquiries that were too low for them to accept. It is reported that the market deal prices of vanadium pentoxide (98 percent flakes) have already fallen to the level of RMB 95,000/mt ($13,929/mt). Looking at the current situation, a recovery seems unlikely for the domestic ferrovanadium market in the coming week.