Chinese ferromolybdenum market sees price stability and weak trading

Monday, 16 November 2009 11:42:25 (GMT+3)   |  
       

Over the past week the Chinese ferromolybdenum market has gradually become stable against the background of a weak trading volume. Meanwhile, domestic ferrovanadium prices continued to go up, but most deals were concluded between traders instead of with end-side users.

Product name

Specification

Place of origin

Price (RMB/mt)

Weekly change (RMB/mt)

Price($/mt)

Ferromolybdenum

Mo60

Jinzhou

126,000

-

18,475

Ferrovanadium

V50

Panzhihua

98,000

2,000

14,370

The Chinese ferromolybdenum market posted an overall stable trend in the past week. By the end of last week, the mainstream prices of ferromolybdenum in Jingzhou had remained constant at RMB 126,000/mt ($18,475/mt), while the market prices of molybdenum concentrate (45 percent) were around RMB 1,900/mtu ($279/mtu). Meanwhile, European market prices of ferromolybdenum (60 percent Mo) are at $27.5-30.5/kg Mo, while prices of molybdenum oxide in this market are at $10.8-11.8/lb.

Following the recovery of the previous week, ferromolybdenum prices in the domestic market gradually became stable during the past week, with most players standing aside from market trading. Due to the soft demand for ferromolybdenum, domestic producers with plentiful stocks in hand have chosen to halt production in order to carry out overhauling works. If there is no big improvement in market demand, a growing number of producers are likely to suspend their operations in the coming days. In addition, molybdenum concentrate producers are only able to make a slim profit in the current market, and some have already suffered losses. On the whole, most market players are standing aside from the market and generally lack optimism as regards the prospects for the future trend of the market.

Meanwhile, the Chinese ferrovanadium market has continued its minor rebound during the past week. Domestic quotations of ferrovanadium (50 percent) have increased by RMB 2,000/mt ($293/mt) to the range of RMB 96,000-100,000/mt ($14,076-14,663/mt), with vanadium pentoxide (98 percent flakes) up by RMB 4,000/mt ($587/mt) to RMB 90,000/mt ($13,196/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 at €22.5-24/kg.

China's domestic ferrovanadium market has shown a certain slowdown in its climbing movement over the past week. Meanwhile, producers have continued to raise their quotations, with the highest market quotations up to RMB 102,000/mt ($14,956/mt). However, with few deals concluded at high levels, deal prices in the market have generally been at around RMB 96,000-98,000/mt ($14,076-14,370/mt) in recent days. In addition, Chinese mills only made purchases for small tonnages over the past week, with purchase prices standing at around RMB 94,000-95,000/mt ($13,783-13,930/mt). As regards raw materials, vanadium pentoxide producers have continued to hike their sales prices, while most ferrovanadium producers have been standing aside from market trading.


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