BEIJING (Asian Metal) 16 Jul 19 – Fujian Xinhao Advanced Material Co., Ltd., with an annual production capacity of 1,200t of vanadium nitride, resumed production early this week. It had been out of production for three months for equipment maintenance, and during the suspension its output dropped by about 180t.
“We suspended production in early April for equipment maintenance and originally planned to resume production in mid-May. But considering the unfavorable conditions in the vanadium nitride market, we did not go back to operation until mid-July. Now we are heating the furnaces and have no outputs yet,” a source from the company said. “Most purchasing prices we receive now from steel mills for August long-term purchase orders are around RMB190,000/t (USD35.9/kg V) delivered D/A 180 days, while suppliers of raw material vanadium pentoxide flake 98%min quote the material mostly at around RMB120,000/t (USD8.1/lb V) EXW D/A 180 days. This means that our profit margin is only RMB2,000/t (USD291/t),” the source added.
Located in Ningde, Fujian, the company is one of the only two vanadium nitride producers in Fujian province. It produced 60t of vanadium nitride in March before going into suspension, up by 10t MOM, and holds no stocks for the time being.
This Tuesday in China, mainstream prices for vanadium nitride stay at RMB190,000-193,000/t (USD35.9-36.4/kg V) EXW D/A 180 days, up by RMB5,000/t (USD0.9/kg V) from last week. Most producers hold sufficient orders and now are busy delivering orders previously signed with steel mills. The Chinese vanadium nitride market sees tight spot supply, and insiders believe that prices for Chinese vanadium nitride would still edge up in the coming week.
www.asianmetal.com
