BEIJING (Asian Metal) 28 Jun 19 – Chaoyang Xinming Vanadium and Titanium Technology Co., Ltd. halted ammonium metavanadate production early this week, due to weak downstream market demand, with schedule for production resumption pending, noted by a source to Asian Metal.
“We shut down the production line early this week and stopped taking orders for the moment, as currently the mainstream prices of ammonium metavanadate stay almost on par with our production cost, which stands at around RMB120,000/t (USD8.0/lb V),” said an insider from the company. He also claimed that he holds a pessimistic outlook towards the market trend for meager profit in industrial grade ammonium metavanadate production at present, even the prices for high-purity grade products could merely cover the costs, and moreover, the coming summer off-season would further weaken the demand.
Based in Chaoyang City, Liaoning Province, the company holds an annual production capacity of 960t. It produced 50t in June, 10t less compared with the output in May, without inventory at present.
Chinese ammonium metavanadate 98%min mainstream market prices slid to RMB117,000-120,000/t (USD7.8-8.0/lb V) Inc-VAT EXW D/P this Friday, down by RMB6,000/t (USD0.4/lb V) from one week ago. Market insiders generally hold a bearish mood towards the market trend, due to the lower-than-expected prices for vanadium products in the tenders of downstream steel mills, and the negative chain reactions it caused for ammonium metavanadate as raw material. It is expected that Chinese ammonium metavanadate prices would remain under downward pressure in the coming week.
www.asianmetal.com
