BEIJING (Asian Metal) 5 Jul 19 – Currently, mainstream transaction prices for Chinese vanadium nitride stand at RMB185,000-188,000/t (USD35.0-35.5/kg V) EXW D/A 180 days, down by RMB12,000/t (USD2.3/kg V) from last week. As steel mills offer bidding prices which are lower than expected, in response suppliers cut their quotations to cater to buyers’ needs. Market players therefore become not so confident in future price trend, and believe that prices for Chinese vanadium nitride would be relatively stable in the coming week.
A trader in Northwest China quotes vanadium nitride at RMB190,000/t (USD35.9/kg V) EXW D/A 180 days now, and can sell to clients who have real intention to buy at RMB188,000/t (USD35.5/kg V) as the lowest transaction price, which is RMB10,000/t (USD1.9/kg V) lower than the bottom-line price last week. He said, “Three weeks ago we bought 30t of vanadium nitride at RMB195,000/t (USD36.9/kg V) to refill our stocks. But this purchase turned out to be losses, so we have to sell the material at lower prices in order to get better cash flows.” The source now refuses to make sales at prices below their lowest transaction price.
Typically trading 60tmp of vanadium nitride, the source expects to sell 60t in July, unchanged MOM, and holds 30t of stocks now.
A trader in South China reveals that most quotations they receive now for vanadium nitride are around RMB188,000/t (USD35.5/kg V) EXW D/A 180 days, and from their regular supplier he can purchase at RMB185,000/t (USD35.0/kg V) which is RMB13,000/t (USD2.5/kg V) lower than the bottom-line price last week. He said, “Summer is the off season in steel consumption, so the corresponding decreases in vanadium nitride prices during this period comply with market rules. Despite this, vanadium nitride prices in China are still much higher than in the international market, so there are no economic significances for us to export the material.” The source last purchased 20t of the material at RMB185,000/t (USD35.0/kg V) late this week, and then sold it to one of their regular clients, a steel mill. As demand is weak, the source believes that prices for Chinese vanadium nitride would stay relatively stable in the coming week.
Typically trading 40tmp of vanadium nitride, the source expects to sell 40t in July, unchanged MOM, and holds no stocks now.
www.asianmetal.com
