BEIJING (Asian Metal) 10 Jun 20 – Currently, mainstream prices of Chinese ammonium metavanadate 98%min stand at RMB102,000-104,000/t (USD14.4-14.7/kg) Inc-VAT EXW D/P, down by RMB2,000/t (USD0.3/kg) from last week. As major producers published their long-term agreement prices of vanadium pentoxide flake 98%min at RMB107,000/t (USD7/lb V2O5) EXW D/A 180 days, which is lower than market prices for about RMB8,000/t (USD0.52/lb V2O5), so some suppliers of ammonium metavanadate drop their quotation accordingly. However, as the market demand keeps strong, most insiders believe that mainstream prices of ammonium metavanadate 98%min would keep firm in the coming week.
“We sold 15t at RMB102,000/t (USD14.4/kg) Inc-VAT EXW D/P this Tuesday, down by RMB3,000/t (USD0.4/kg) from early last week,” a producer in South China said. They sold 20t at RMB105,000/t (USD14.8/kg) early last week. He heard major producers started to sell vanadium pentoxide flake 98%min by long-term agreement at RMB107,000/t (USD7/lb V2O5) EXW D/A 180 days. However, prices in spot market stand at around RMB113,000/t (USD7.39/lb V2O5) EXW D/P. He thinks that major producers disrupted the pace of price increases for temporary and believes that mainstream prices of ammonium metavanadate 98%min would keep increasing in the coming week.
With an annual production capacity of 2,400t, they produced about 200t in May and expect the same volume in June. They are producing for the signed orders now, holding no stocks.
“The long-term agreement price for vanadium pentoxide flake 98%min of major producers makes the current vanadium market mixed but any way, our suppliers dropped their quotation for ammonium metavanadate voluntarily,” a consumer in South China said. Their last deal was made this Tuesday, when they bought 10t at RMB102,000/t (USD14.4/kg) Inc-VAT EXW D/P, which would deliver to them before 20 June. They tried to sent inquiries early last week but most suppliers quoted at RMB106,000/t (USD15/kg) EXW D/P. Considering few suppliers would like to accept orders at lower price level, he believes that mainstream prices of ammonium metavanadate 98%min would keep steady in the coming week.
With an annual consumption capacity of 240t, they consumed about 180t in 2019 and about 80t in the first five months this year. They expect to consume about 15t in June, unchanged from May, holding about 10t of regular stocks, unchanged from last week.
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