BEIJING (Asian Metal) 23 Jun 20 – Currently, mainstream prices of Chinese vanadium nitride stand at RMB160,000-163,000/t (USD29.4-29.9/kg V) EXW D/A 180 days, down by RMB4,000/t (USD7.3/kg V) from last Wednesday. As traders are in hurry to reduce their stocks, dealing prices keep moving down. However, few producers would follow up due to the high cost of raw materials. Therefore, high and low prices coexist together in the market. Considering prices of raw material vanadium pentoxide flake 98%min stay firm during the past week, insiders believe that mainstream prices of vanadium nitride would keep steady in the coming week.
“Traders are in hurry to reduce their inventory now and I don’t think their dealing prices could represent mainstream prices. We would never follow up the current dealing prices, as traders even dropped below RMB160,000/t (USD29.4/kg V) EXW D/P,” a producer in Northwest China noted. They bought raw material vanadium pentoxide flake 98%min at RMB107,000/t (USD7.0/lb V2O5) EXW D/A 180 days and our cost of vanadium nitride stand firm at RMB165,000/t (USD30.3/kg V). They could at most accept RMB163,000/t (USD29.9/kg V) for firm bids more than 30t now and refuse to accept any orders below this price level. Their last deal was made about 10 days ago, when they sold 30t at RMB168,000/t (USD30.8/kg V). Considering the high cost and the low prices resources of traders, he believes that mainstream prices of vanadium nitride would keep weak in the coming week.
With an annual production capacity of 3,000t, they produced about 1,500t in 2019 and about 900t in the first five months of 2020. They expect to produce about 200t in June, up by 20t from May, holding about 50t of regular stocks now, down by 10t from last month.
“I sent an inquiry for 50t first this Monday and find that producers quote at more than RMB165,000/t (USD30.3/kg V) delivered D/A 180 days, traders quote less than RMB160,000/t (USD29.4/kg V),” a consumer in South China said. He heard that Zhongtian Steel bought 120t at RMB161,500/t (USD29.6/kg V) late last week and mainly are history stocks. They could not reference to this price level because most of their suppliers are regular production enterprises. He received the current prices for vanadium pentoxide flake 98%min stand firm at RMB107,000/t (USD7.0/lb V2O5) delivered D/A during the past week, which means the cost of vanadium nitride would be RMB165,000/t (USD30.3/kg V). Considering the cost keeps firm, he believes that mainstream prices of vanadium nitride would stay around RMB165,000/t (USD30.3/kg V) in the coming week.
With an annual consumption capacity of 1,800t, they consumed about 1,680t in 2019 and about 650t in the first five months this year. They expect to consume 140t in June, unchanged from May, holding about 50t of stocks now, unchanged from last month.
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