BEIJING (Asian Metal) 25 Apr 19 – Currently, mainstream prices for vanadium pentoxide flake stand at RMB167,000-170,000/t (USD24,849-25,295/t) EXW D/A 180 days in Chinese market, down by RMB1,000/t (USD149/t) from last week. As the demand for downstream vanadium product is weak now, few plants show interest in purchasing raw material.
It is expected that prices for Chinese vanadium pentoxide flake would remain at low levels in the coming week.
A consumer in Northwest China said that the highest price they can accept for vanadium pentoxide flake 98%min is RMB170,000/t (USD25,295/t) EXW D/A 180 days now, down by RMB1,000/t (USD149/t) from the prior week. He said, “The transaction prices for vanadium nitride on which we agreed with our downstream customers was RMB258,000/t (USD38,389/t) EXW D/A 180 days early this week. Based on back-calculation of costs, the purchasing price for vanadium pentoxide flake 98%min, the raw material, should not exceed RMB170,000/t (USD25,295/t) EXW D/A 180 days. However, we can barely gain any profits even if we sell at the price, so we now prefer to purchase low-priced ammonium metavanadate, which will be processed into vanadium pentoxide flake by ourselves.” The company last purchased 30t of vanadium pentoxide flake at RMB175,000/t (USD26,039/t) two weeks ago. In light of the limited transactions in downstream vanadium nitride market, the consumer predicts that prices for vanadium pentoxide flake would hover at low levels in the coming week.
With an annual consumption capacity of 1,800t, the company consumed about 140t in March and expects the volume to decline to 110t in April due to fewer orders from downstream customers. The company has run out of inventory.
A consumer from southern China said that the quotations for vanadium pentoxide flake 98%min they received from suppliers are mostly RMB170,000/t (USD25,295/t) EXW D/A 180 days now, about RMB1,000/t (USD149/t) lower than one week ago. “We purchased about 30t of the material at the price early this week, and we’ve learned that almost all large vanadium pentoxide flake producers are selling at the price now,” he said, “We don’t make purchases of vanadium pentoxide flake until we finalize the deal with downstream vanadium nitride consumers. We can settle for the current price for vanadium pentoxide flake but it is believed that prices for the material would remain at low levels in the coming week as prices for vanadium nitride would also keep the same trend.”
With an annual consumption capacity of 2,000t, the company consumed about 80t in March and expects the same consumption in April, holding 40t of stocks now.
www.asianmetal.com
