BEIJING (Asian Metal) 30 Oct 19 – As prices of downstream vanadium products keep dropping, few consumers would like to buy raw material at high price level. Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min dropped to RMB108,000-111,000/t (USD7.1-7.3/lb V2O5) EXW D/A 180 days, down by RMB10,000/t (USD0.7/lb V2O5) from last week. Insiders believe prices of vanadium pentoxide flake would continue declining in the coming week.
A producer in North China quotes their vanadium pentoxide flake 98%min at RMB110,000 (USD7.2/lb V2O5) EXW D/A 180 days and can buy at RMB108,000/t (USD7.1/lb V2O5) for firm bids, down by RMB10,000/t (USD0.7/lb V2O5) from last week. “I heard the bidding price of vanadium nitride for Zhongtian Steel company dropped to RMB160,000/t (USD29.4/kg V), down by RMB12,000/t (USD2.2/kg V) from last week. Most of our downstream clients refuse to buy vanadium pentoxide flake 98%min at more than RMB108,000/t (USD7.1/lb V2O5) EXW D/A 180 days now,” said the source. Their last deal was made early this week, when they sold 30t at RMB105,000/t (USD6.9/lb V2O5) EXW D/P. He believes prices of vanadium pentoxide flake 98%min would drop by RMB5,000/t (USD0.3/lb V2O5) in the coming week.
With an annual production capacity of 2,000t, they produced 150t in September and expect the same volume in October, holding 50t of stocks now.
A trader in North China noted the current price he received keeps at RMB105,000/t (USD6.9/lb V2O5) EXW D/P at the moment, down by RMB9,000/t (USD0.6/lb V2O5) from last week. “Our last deal was made early last week, when we sold 20t at RMB114,000/t (USD7.5/lb V2O5). As prices of this material keep dropping, we won’t consider to build stock in near term,” said the source. He added, “I heard prices of ferrovanadium 50%min dropped to RMB115,000/t (USD32.6/kg V) now, down by RMB10,000/t (USD2.8/kg V) from last week.” Considering vanadium pentoxide flake is loosing its market support, he believes prices of this material would drop to RMB100,000/t (USD6.6/lb V2O5) in the coming week.
With a regular trading volume of 50tpm, they sold 500t in 2018 and have sold 400t this year. They expect to sell 30t in October, down by 20t from September, holding no stocks now, reduced by 30t from last month.
www.asianmetal.com
