China’s special alloys market posts overall uptrend

Following several weeks of sluggishness, both the domestic ferromolybdenum and ferrovanadium markets in China have registered an overall upward movement during the past week. Looking at the current situation, following a period of limited purchases of ferroalloys by various mills, market demand has started to rise while the domestic market has been indicating a relatively active trading performance in recent days.

The Chinese ferromolybdenum market has posted an overall positive performance in the past week. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou had risen RMB 1,000/mt ($147/mt) to the level of RMB 126,000/mt ($18,475/mt), while the market prices of molybdenum concentrate (45 percent) were up RMB 50/mtu ($7/mtu) week on week to RMB 1,900/mtu ($279/mtu). Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $26-27.75/kg Mo, while prices of molybdenum oxide in this market are at $10.9-11.5/lb.

Over the past week, China's domestic ferromolybdenum market halted its downward movement and became stable, accompanied by an increased trading volume. Most mills and traders had previously suspended their purchases of ferromolybdenum materials, leading to a sharp, continuous fall in market prices; however, following the consumption of stocks over a period of nearly one month, domestic mills have again started to make purchases in the market. Although most deals have been concluded for small tonnages, overall demand has still indicated a great improvement compared with the previous situation. Moreover, with prices indicating stability, traders have also been more actively engaged in market trading, contributing to brisk levels of commercial activity. Looking at the current situation, in the context of the current temporary market recovery, market players generally maintain a cautious approach, and so it still needs to be seen whether the market will retain its current demand levels in the future.

Meanwhile, the Chinese ferrovanadium market halted its downtrend and started to climb up during the past week. Domestic quotations of ferrovanadium (50 percent) have increased by RMB 5,000/mt ($733/mt) to the range of RMB 96,000/mt ($14,076/mt), with vanadium pentoxide (98 percent flakes) up by RMB 4,000/mt ($587/mt) to RMB 86,000/mt ($12,610/mt). Meanwhile, in the international market, quotations of vanadium pentoxide (98 percent flakes) in Europe are at $6.7-7.5/lb, while market quotations of ferrovanadium (V70-80%) are €23-24.5/kg.

The domestic ferrovanadium market has rebounded in the past week, with a minor climb recorded in market quotations. It is heard that some mills have started to buy materials due to the increasing steadiness of prices, while traders have begun to do some "bottom fishing", thus resulting in relatively brisk trading activity in the ferrovanadium market. In this connection, most ferrovanadium producers have raised their ex-factory prices. Although ferrovanadium prices have registered a certain rise, the profit range remains limited due to the current price gap between ferrovanadium and vanadium pentoxide. Some market players state that traders have recently made many inquiries in the Hebei, Shanghai, and Jiangsu regions, though downstream demand still looks slack. With abundant ferrovanadium materials available in the domestic market, there does not appear to be much room available for the further ascension of the domestic ferrovanadium market in the near future.