BEIJING (Asian Metal) 10 Sep 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB137,000-140,000/t (USD38.4-39.3/kg V) EXW D/A 180 days, unchanged from last week. Consumers only make purchase according to urgent need and the market keeps quiet. Considering the cost stay stays high, insiders believe prices of ferrovanadium would be steady in the coming week.
A consumer in Hebei claimed the current quotation for ferrovanadium 50%min he received stands around at RMB140,000/t (USD39.3/kg V) EXW D/A 180 days and can buy at RMB139,000/t (USD39.0/kg V) for firm bids, unchanged from last week. “Our last deal was made two weeks ago, when we bought 30t at RMB138,000/t (USD38.7/kg V). Ferrovanadium producers refuse to drop their quotation as their cost remains high,” said the source. He heard prices of vanadium pentoxide flake 98%min hover around at RMB130,000/t (USD8.4/lb V205) at the moment, unchanged from last week. They used to buy by month but they buy raw material by week now as downstram rebar market keeps soft. He believes prices of ferrovanadium would flatten in the coming week.
With an annual consumption capacity of 2,400t for ferrovanadium, they consumed 1,800t in 2018 and have consumed 1,000t so far this year. They consumed 150t in August and expect the same volume in September, holding 100t of stocks now, unchanged from last month.
A consumer in Shaanxi noted the lowest quotation he received stands at RMB138,000/t (USD38.7/kg V) EXW D/A 180 days, unchanged from last week. “Our latest deal was made in late August, when we bought 20t at RMB138,000/t (USD38.7/kg V) delivered D/A 180 days and our last deal was made in the middle of August, when we bought 20t at RMB143,000/t (USD40.1/kg V) delivered D/A 180 days. However, prices seem steay in September,” said the source. As the profit of downstream rebar keeps thin, they refuse to buy ferrovanadium at higher price level. However, considering the cost of ferrovanadium be firm, few suppliers would like to drop quotation. He believes prices of ferrovanadium would stay steady in the coming week.
With an annual consumption capacity of 600t for ferrovanadium, they consumed 500t in 2018 and have consumed 350t this year. They consumed 40t in August and expect the same volume in September. They have about 30t in hand at the moment, unchanged from last month.
www.asianmetal.com
