BEIJING (Asian Metal) 28 Nov 19 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB149,000-152,000/t (USD27.5-28.1/kg V) EXW D/A 180 days, down by RMB2,000/t (USD0.4/kg V) from this Wednesday. Steel mills refuse to buy at high pricenh level, which brought great down pressure to vanadium nitride market. Though most suppliers refuse to drop their quotation for high cost, considering the demand from end users keeps soft, insiders believe prices of vanadium nitride would edge down in the coming week.
A producer in South China quoted their bottom price for vanadium nitride at RMB150,000/t (USD27.7/kg V) EXW D/P, down by RMB1,000/t (USD0.2/kg V) from this Monday. “I heard the bidding price of Nanjing Steel mill at RMB147,000/t (USD27.2/kg V) Delivered D/A 180 days. However, we won’t drop our quoation to follow this price level as our cost keeps high,” said the source. He added, “We bought raw material vanadium pentoxide flake 98%min at RMB95,000/t (USD6.3/lb V2O5) EXW D/P and the current quotation is almost our cost line.” Their last deal was made early last week, when they sold 20t at RMB148,000/t (USD27.4/kg V). Considering the supply situation stays loose, he believes price of vanadium nitride would keep weak in the coming week.
With an annual production capacity of 2,000t, they produced 150t in October and expect 120t in Novembe, holding 60t of stocks at the moment.
A producer in North China noted their quotation for vanadium nitride at RMB152,000/t (USD28.1/kg V) EXW D/A 180 days and can accept RMB150,000/t (USD27.7/kg V) for firm bids, down by RMB2,000/t (USD0.4/kg V) from this Monday. “I received an inquiry for 15t this Wednesday but the buyer only wanted to buy at no more than RMB148,000/t (USD27.4/kg V),” said the source. They didn’t accept this order as this price level is lower than their cost line. He added, “It’s hard to buy vanadium pentoxide flake 98%min below RMB96,000/t (USD6.3/kg V) EXW D/P at the moment, which means the cost of vanadium nitride stay at RMB152,000/t (USD28.1/kg V).” Their last deal was made early last week, when they sold 20t at RMB155,000/t (USD28.7/kg V) Delivered D/A 180 days to one of their regular clients. They are in no hurry to accept new orders as the current price level cann’t even gurantee their basic profit margin. He believes prices of vanadium nitride would stay weak in the coming week.
With an annual production capacity of 3,000t, they only run half of the production lines at the moment. They produced 120t in October and expect 90t in November, holding 40t of stocks now.
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