BEIJING (Asian Metal) 8 Jun 19 – Fenyi Xinxin Industry and Trading Co., Ltd., with an annual production capacity of 720t for ammonium metavanadate 98%, plans to resume 75% of its capacity in the coming two weeks, a source from the company revealed. The company has been out of production for two months.
“We totally have four production bases, which can produce 60t of ammonium metavanadate 98%min monthly at full capacity. We shut down all of these bases in late April as the prices had dropped below costs, and we plan to resume all of the capacity of three of them in the coming half month. The lowest selling price for our ammonium metavanadate 98%min was RMB102,000/t (USD6.8/lb V) EXW D/P before the production suspension, while our production costs were above RMB110,000/t (USD7.4/lb V),” said another source from the company.
The company, based in Xinyu, Jiangxi, produced 30t of ammonium metavanadate in April, down by 20t from March, and holds no stocks now.
This Friday, mainstream prices for Chinese ammonium metavanadate 98%min were RMB117,000-120,000/t (USD7.9-8.1/lb V) Inc-VAT EXW D/P, down by RMB6,000/t (USD0.4/lb V) from last week. As the purchase prices for vanadium nitride of steel mills were lower than the expected one of market participants, which made it more possible for vanadium products prices to drop. Market participants are pessimistic about the market outlook, so the lowest price for Chinese ammonium metavanadate 98%min might move down to RMB115,000/t (USD7.7/lb V) in the coming week.
www.asianmetal.com
