BEIJING (Asian Metal) 19 Jul 19 – Currently, mainstream transaction prices for Chinese vanadium pentoxide powder 98%min stay at RMB122,000-126,000/t (USD8.2-8.5/lb V) EXW D/P, up by RMB2,000/t (USD0.1/lb V) from last week. Traders, harboring a strong sentiment of pushing prices higher, are active in sending enquiries; but as purchasing prices offered by downstream steel mills for vanadium products have not risen yet, insiders believe that it would be difficult for the current upward movement in vanadium raw material prices to go on, and prices for Chinese vanadium pentoxide powder would tend to stabilize in the coming week.
A consumer in North China purchased 10t of vanadium pentoxide powder 98%min at RMB126,000/t (USD8.5/lb V) delivered D/A 180 days this Wednesday, equivalent to RMB123,000/t (USD8.3/lb V) delivered D/P, up by RMB3,000/t (USD0.2/lb V) from last week. He said, “Now suppliers keep raising their quotations.When we made purchases directly from producers, we always encounter traders who compete against us with higher prices. Last week the quotation we received was only RMB123,000/t (USD8.3/lb V) delivered D/A 180 days. We just hesitated form some time, and when we set out to purchase now, we have to pay RMB30,000 (USD4,365) more for the deal.” As July is the off season in steel mills’ purchasing vanadium products and their bidding prices can’t go up, the source believes that prices for Chinese vanadium pentoxide powder would stabilize in the coming week.
With an annual consumption capacity of 400t of vanadium pentoxide powder, the source expects to consume 30t in July, unchanged MOM, and holds 15t of stocks now.
A trader in North China reveals that most quotations they receive now for vanadium pentoxide powder 98%min are around RMB125,000/t (USD8.4/lb V) EXW D/P, up by RMB2,000/t (USD0.1/lb V) from last week.He said, “Now spot supply of the material is tight. We purchased 30t of vanadium pentoxide powder 98%min at RMB123,000/t (USD8.3/lb V) late last week, and are in no hurry to make sa.es now.” He added, “We received an enquiry from a client who intended to buy all the material at RMB125,000/t (USD8.4/lb V). We required the client to make a 100% down payment, while they insisted in making the payment one week after they have received the material. Finally the deal was not concluded.” Owing to tight market supply, the source believes that prices for Chinese vanadium pentoxide powder would stay firm in the coming week.
Typically trading 30tpm of vanadium pentoxide powder, the source expects to sell 30t in July, unchanged MOM, and holds 60t of stocks now.
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