BEIJING (Asian Metal) 7 May 20 – Currently, mainstream prices of Chinese vanadium pentoxide powder 98%min stand at RMB92,000-95,000/t (USD6.0-6.2/lb V2O5) EXW D/P, the same as last week. Most consumers only purchase according to urgent need and the demand stays soft. However, few suppliers would like to drop their quotation to promote sales. Insiders believe that mainstream prices of vanadium pentoxide powder would stay in a stalemate in the coming week.
A producer in South China quotes their vanadium pentoxide powder 98%min at RMB95,000/t (USD6.2/lb V2O5) EXW D/P and could accept RMB93,000/t (USD6.1/lb V2O5) for firm bids more than 10t, the same as last week. “We mainly produce for our regular clients now and we are in no hurry to expand production because the profit margin keeps thin,” said the source. Their last deal was made two weeks ago, when they sold 30t at RMB92,500/t (USD6.05/lb V2O5). Their regular clients even asked to buy at no more than RMB92,000/t (USD6/lb V2O5) this week, they all refused them directly. Considering inquiries are rare to see at the moment, he believes that mainstream prices of vanadium pentoxide powder 98%min would keep steady in the coming week.
With a production capacity of 1,000t, they produced about 540t in 2019 and only produced about 50t so far this year due to the COVID-19. They just resumed production from late April and produced about 10t in April. They expect to produce 40t in May, holding about 60t of stocks now, down by 20t from last month.
A producer in South China quotes at RMB92,500/t (USD6.05/lb V2O5) for vanadium pentoxide powder 98%min and could accept RMB92,000/t (USD6/lb V2O5) for firm bids more than 20t, unchanged from last week. “I received an inquiry for 20t late last week but the buyer only wanted to buy at no more than RMB90,000/t (USD5.8/lb V2O5). I refused this order directly,” said the source. They would not accept any orders below their quotation at the moment. He believes that mainstream prices of vanadium pentoxide powder 98%min would stay in a stalemate in the coming week.
With an annual production capacity of 700t, they produced about 315t in 2019 and only produced 15t so far this year. They are out of production during the past three months due to the COVID-19 and mainly sell their history stocks now, holding about 80t of inventory at the moment.
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