BEIJING (Asian Metal) 25 Apr 19 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB255,000-258,000/t (USD37,882-38,328/t) EXW D/A 180 days, up by RMB5,000/t (USD743/t) from last week. Some producers suspended production due to weak demand, so the market sees limited supply. Considering prices for raw material move down slowly, market participants predicted that Chinese vanadium nitride prices would be stable in the coming week.
A producer in North China offers vanadium nitride at RMB260,000/t (USD38,625/t) EXW D/A 180 days, and his lowest price for firm bids is RMB258,000/t (USD38,328/t), up by RMB5,000/t (USD743/t) from last week. He said, “We only operate one of our two production lines now, and the raw materials we used were all bought at high prices, so we refuse counteroffers.” He signed long-term orders with steel mills, and is now focusing on production and deliveries. He has concluded no deals on spot market since April. The producer added, “As current prices of major vanadium pentoxide flake 98%min producers stabilize at RMB170,000/t (USD25,255/t) EXW D/A 180 days, the production costs for vanadium nitride would be over RMB255,000/t (USD37,882/t).” He predicted mainstream prices for Chinese vanadium nitride would be firm in the coming week.
With an annual production capacity of 1,200t for vanadium nitride, the producer produced 50t in March, and expects the same volume in April. He produces based on sales and holds no stocks now.
A producer in South China also offers vanadium nitride at RMB260,000/t (USD38,625/t) EXW D/A 180 days, and might accept RMB258,000/t (USD38.328/t) as the lowest price, up by RMB3,000/t (USD446/t) from last week. He said, “Most customers have no intention of purchasing now, and the price trend would not be clear until steel mills release their purchase prices at the end of the month. As far as I am concerned, the prices tend to move up according to current prices for vanadium pentoxide flake.” He added, “Our vanadium pentoxide flakes were bought at RMB175,000/t (USD26,006/t) EXW D/A 180 days, about RMB5,000/t (USD743/t) higher than current market prices. In order to avoid the fact that the selling prices are lower than costs, we refuse any counteroffers now.” He predicted that Chinese vanadium nitride prices would be firm in the coming week.
With an annual production capacity of 2,000t for vanadium nitride, the producer produced 100t in March, and expects 80t in April due to reduced orders. He holds 20t of stocks now.
www.asianmetal.com
