BEIJING (Asian Metal) 14 Jan 20 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB92,500-95,500/t (USD6.21-6.41/lb V2O5) EXW D/A 180 days, unchanged from last week. Few consumers would like to buy raw material at high price level for the soft demand of downstream vanadium products. However, most suppliers refuse to drop their quotation to promote sales for high cost. Insiders believe that prices of vanadium pentoxide flake would stay in a stalemate in the coming week.
A producer in South China quotes their vanadium pentoxide flake 98%min at RMB94,500/t (USD6.34/lb V2O5) EXW D/P and they can accept RMB94,000/t (USD6.31/lb V2O5) for firm bids, unchanged from last week. “I received an inquiry last week for 32t and the buyer only wanted to buy at no more than RMB92,500/t (USD6.21/lb V2O5). We refused them and we prefer to watch the market,” said the source. Their last deal was made two weeks ago, when they sold 64t at RMB94,000/t (USD6.31/lb V2O5). He believes that prices of vanadium pentoxide flake would stay firm in the coming week.
With an annual production capacity of 2,400t, they produced 180t in last December and expect the same volume in January, holding 64t of stocks now.
A consumer in South China noted the current price for vanadium pentoxide flake 98%min he received stands at RMB93,000/t (USD6.24/lb V2O5) EXW D/P, the same as last week. “Prices of downstream vanadium products keep weak and inquiries are rare to see now. If we buy raw material at the current price level, we can hardly guarantee our basic profit margin,” said the source. He added, “We can at most accept RMB91,000/t (USD6.11/lb V2O5) for vanadium pentoxide flake 98%min. Though no suppliers would like to sell, I believe that they will have to drop their quotation to this price level sooner or later.” Their last deal was made two weeks ago, when they bought 32t at RMB93,000/t (USD6.24/lb V2O5).
With an annual consumption capacity of 1,000t, they consumed 900t in 2018 and 840t in 2019. They expect to consume 60t in January, down by 20t from last December, holding 30t of stocks now, down by 30t from last month.
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