BEIJING (Asian Metal) 4 Apr 20 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB142,000-145,000/t (USD26.0-26.5/kg V) EXW D/A 180 days, the same as last week. All bidding prices are concentrated within RMB145,000/t (USD26.5/kg V) delivered D/A 180 days during the past week and few producers could guarantee their basic profit marin as their cost keeps firm. Insiders believe that mainstream prices of Chinese vanadium nitride would stay in a stalemate in the coming week.
A producer in South China quotes their vanadium nitride at RMB141,000/t (USD25.8/kg V) EXW D/P and they won’t accept any discount for firm bids, the same as last week. “Our last deal was made late last month, when we sold 30t at RMB144,000/t (USD26.3/kg V) delivered D/A 180 days,” said the source. He added, “I received the current prices for raw material vanadium pentoxide flake 98%min stand at around RMB93,000/t (USD6.1/lb V2O5) EXW D/P, unchanged from last week.” Considering the cost keeps firm, he believes that mainstream prices of Chinese vanadium nitride would keep steady in the coming week.
With an annual production capacity of 2,000t, they produced 80t in March, down by 40t from February, holding 40t of stocks now.
Another producer in South China notes their vanadium nitride at RMB142,000/t (USD26.0/kg V) EXW D/P and they could accept RMB141,000/t (USD25.8/kg V) for firm bids, unchanged from last week. “We would lose about RMB4,000/t (USD0.7/kg V) for every ton we sell. However, in order to withdra money, we have to sell,” said the source. Their last deal was made this Monday, when they sold 40t at RMB141,000/t (USD25.8/kg V). Considering the cost keeps firm, he believes that mainstream prices of vanadium nitride would keep steady in the coming week.
With an annual production capacity of 1,400t, they produced 1,200t in 2019 and have produced 130t so far this year. They produced 80t in March and expect the same volume in April, holding 180t of stocks now.
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