BEIJING (Asian Metal) 29 Jun 20 – Currently, mainstream prices of Chinese vanadium nitride stand at RMB159,000-162,000/t (USD29.2-29.7/kg V) EXW D/A 180 days, down by RMB1,000/t (USD0.2/kg V) from early last week. Traders are in hurry to reduce their stocks, which lead dealing prices keep dropping. However, few producers would like to follow up due to the high cost of raw materials. As the cheap stock dwindles, insiders believe that mainstream prices of vanadium nitride would rebound slightly in the coming week.
“Our last deal was made about 10 days ago, when we sold 30t at RMB160,000/t (USD29.4/kg V) EXW D/P. Though some traders sell at only RMB155,000/t (USD28.4/kg V), we won’t follow up to the high cost,” a producer in Northwest China said. They could accept RMB162,000/t (USD29.7/kg V) EXW D/A 180 days at the moment and would not accept any orders below this price. They bought raw material vanadium pentoxide flake 98%min at RMB105,000/t (USD6.8/lb V2O5) EXW D/A 180 days. According to the high cost, he believes that mainstream prices of vanadium nitride would rebound to RMB165,000/t (USD30.3/kg V) EXW D/A 180 days in the coming week.
With a production capacity of 2,000tpy, they produced about 540t in 2019 and about 260t so far this year. They produced about 60t in May and expect 100t in June, holding about 50t of regular stocks, the same as last month.
“We bought 32t of vanadium pentoxide flake 98%min at RMB105,500/t (USD6.8/lb V2O5) one week ago. According to our cost, we quote RMB162,000/t (USD29.7/kg V) EXW D/A 180 days now and won’t accept any orders below this price,” a producer in South China noted. They also buy vanadium pentoxide flake 98%min, their last deal was made about two weeks ago, when they bought 20t at USD5.3/lb V2O5 CIF China. Though traders sell vanadium nitride at a very low price level, they would only accept orders according to their cost. With the consumption of current cheap inventory of vanadium nitride, he believes that mainstream prices of vanadium nitride would increase to RMB165,000/t (USD30.3/kg V) in the coming week.
With a production capacity of 2,400tpy, they produced about 1,440t in 2019 and about 460t so far this year. They expect to produce about 120t in June, unchanged from May, holding about 30t of stocks now, up by 30t from last month.
www.asianmetal.com
