BEIJING (Asian Metal) 21 Nov 19 – With an annual production capacity of 500t of ammonium metavanadate, Shanyang Hongchang Vanadium Co., Ltd. stopped production this Wednesday as the weather becomes cold and the current profit margin keeps at low level.
“We have been in normal production for five months this year. As the weather becomes colder and colder, the climate is not suitable for production now,” said the source. He added, “Our cost at least needs RMB110,000/t (USD15.6/kg) Ex-VAT. However, we can only sell at no more than RMB90,000/t (USD12.8/kg) Ex-VAT now.” They have no plan to resume production again during the winter. They have 60t of stocks and are in no hurry to sell at the moment. Their target price stay at RMB130,000/t (USD18.5/kg) Inc-VAT EXW D/P.
Located in Shanyang Shangluo, the company uses stone-coal as raw material to produce ammonium metavanadate. They produced 40t in Otcober and 30t so far in November. It’s the most typical example of high-cost ammonium metavanadate production enterprise in Shaanxi area.
Currently, mainstream prices for Chinese ammonium metavanadate 98%min stand at RMB97,000-10,000/t (USD13.8-14.2/kg) Inc-VAT EXW D/P, up by RMB5,000/t (USD0.7/kg) from last week.
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