BEIJING (Asian Metal) 20 Dec 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB93,000-96,000/t (USD6.14-6.34/lb V2O5) EXW D/A 180 days, down by RMB1,000/t (USD0.07/lb V2O5) from last week. As the supply situation keeps too loose and prices of downstream vanadium products drop again and again, insiders believe that prices of vanadium pentoxide flake would face hugh downward pressure in the coming week.
A producer in China quoted their vanadium pentoxide flake 98%min at RMB96,000/t (USD6.34/lb V2O5) EXW D/A 180 days and can accept RMB94,500/t (USD6.24/lb V2O5) EXW D/P for firm bids, down by RMB1,500/t (USD0.10/lb V2O5) from last week. “According to our statistics, the total production of vanadium pentoxide flake would increase to 115,000t this year, up by 16,500t from last year. However, the demand of downstream are much worse than last year, which would lead mainstream prices drop to RMB80,000/t (USD5.29/lb V2O5) in the coming year,” said the source. He added, “We just sold 32t at RMB93,000/t (USD6.14/lb V2O5) EXW D/P to one of our regular clients this Tuesday.” Considering the supply situation stays loose, he believes that prices of vanadium pentoxide flake 98%min would drop to RMB92,000/t (USD6.08/lb V2O5) EXW D/P in the coming week.
With an annual production capacity of 6,000t, they produced 250t in November and expect 200t in December for lack of raw materials, holding about 150t of stocks now.
A consumer in China noted the current price for vanadium pentoxide flake 98%min he received stands at RMB96,000/t (USD6.34/lb V2O5), down by RMB4,000/t (USD0.26/lb V2O5) from two weeks ago. “We mainly buy raw material from major produces and they dropped their quotation according to market development situation. As the supply situation keeps heavily oversupplied, I believe that vanadium market would be in winter in the coming 5 years and our marketing strategy is to reduce production to survive this period of time,” said the source. Their last deal was made late last week, when they bought 64t at RMB96,000/t (USD6.34/lb V2O5). He believes that prices of vanadium pentoxide flake 98%min would drop by RMB2,000/t (USD0.13/lb V2O5) in the coming week.
With an annual consumption capacity of 8,000t, they consumed 350t in November and expect 300t in December, holding about 90t of stocks now.
www.asianmetal.com
