BEIJING (Asian Metal) 29 May 19 – Shanyang Hongchang Vanadium Co., Ltd., with an annual production capacity of 500t of ammonium metavanadate, has commenced pilot production of the material and will resume normal production soon. By starting the pilot production, the company had been out of production for two and half years.
“We suspended production in early 2017 and during the suspension period we conducted technical upgrading on our production lines. Now we have commenced pilot production but have been unable to accumulate some stocks so far. I believe that we can go back to normal production within one month,” a source from the company said. According to him, most buyers who intend to purchase ammonium metavanadate 98%min from the company offer prices of around RMB100,500/t (USD14,549/t) Inc-VAT EXW D/P, a price meaning nearly no profits at all for them. So the company is in no hurry to make sales for the moment and keeps their quotation firm at RMB110,000/t (USD15,924/t).
Located in Shanyng county, Shangluo city, Shaanxi province, the company produces and sells ammonium metavanadate, and their raw material is stone coal produced by local mines.
Currently in China, mainstream prices for ammonium metavanadate 98%min stay at RMB105,000-108,000/t (USD15,200-15,635/t) Inc-VAT EXW D/P, down by RMB10,000/t (USD1,448/t) from last week. Though the current prices are already close to production costs of most producers, they are expected to move down in the coming week owing to weak downstream demand.
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