BEIJING (Asian Metal) 3 Jul 19 – Vietnam Youngsun Tungsten Co., Ltd., with an annual production capacity of 3,000t of ammonium metavanadate, faces a bottleneck in its production now. The company commenced trial production in mid-May, and after nearly two months’ production adaptation, it can maintain an average monthly output of only about 40t at present.
“Our company has big enough designed production capacity. Though we maintain stable production at present, it’s difficult for us to ramp up our production. The main reason is that the vanadium waste we purchase in large quantities contain high proportions of calcium and silicon which are elements imposing suppressive effects upon our ramp-up process. This is what we have not expected, so now we are dedicated to optimizing our production techniques, but believe that it will be of a small possibility to enhance our outputs within the coming half year,” the source said. “At present, our products are mainly sold to Europe. Clients are queuing to buy our products, so we have no big selling pressure while our only worry is that we can’t improve our outputs in the short term,” the source added.
As a company located in Vietnam, it faces relatively more lenient requirements on environmental protection than in China, and is a typical example that the vanadium industry is transferring to third-world countries.
Currently in China, mainstream prices for ammonium metavanadate 98%min stay at RMB115,00-118,000/t (USD7.7-7.9/lb V) Inc-VAT EXW D/P, down by RMB2,000/t (USD0.1/lb V) from last Friday. As summer is the traditional off season in vanadium consumption, most market players are pessimistic about future market trend, believing that prices for Chinese ammonium metavanadate would be relatively stable in the coming week.
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