BEIJING (Asian Metal) 29 Jun 20 – Currently, mainstream prices of Chinese vanadium pentoxide flake 98%min stand at RMB106,000-108,000/t, (USD6.9-7.1/lb V2O5) EXW D/A 180 days, down by RMB1,000/t (USD0.1/lb V2O5) from one week ago. As prices of downstream vanadium products drop slightly during the past week, prices of raw material move down accordingly. Considering market inquiries stay quiet, insiders believe that mainstream prices of vanadium pentoxide flake 98%min would stay weak in the coming week.
“Our last deal was made about three days ago, when we bought 32t at RMB104,000/t (USD6.8/lb V2O5) EXW D/P,” a consumer in North China noted. About one week ago, they received the lowest price of vanadium pentoxide flake 98%min at RMB105,500/t (USD6.8/lb V2O5). They buy vanadium pentoxide flake 98%min as raw materials to produce vanadium nitride. At the moment, they quote vanadium nitride at RMB165,000/t (USD30.3/kg V) EXW D/A 180 days according to their cost. However, no buyers would like to buy at more than RMB162,000/t (USD29.7/kg V) now. Considering prices of vanadium nitride face huge downward tendency, he believes that mainstream prices of vanadium pentoxide flake 98%min would stay weak in the coming week.
With a consumption capacity of 1,800tpy, they consumed about 1,500t in 2019 and about 470t in the first five months of this year. They expect to consume about 140t in June, up by 30t from May, holding about 60t of stocks now, unchanged from last month.
“We are delivering our clients at RMB102,000/t (USD6.7/lb V2O5) EXW D/P at the moment,” a producer in South China said. To be frank, we took money from our customers in advance, so our sales prices would be lower than market prices for about RMB3,000/t (USD0.2/lb V2O5). To new clients, we won’t accept any orders at this price level. They sold 30t at RMB102,000/t (USD6.7/lb V2O5) late last week. Their last deal was made about two weeks ago, when they sold 30t at RMB109,000/t (USD7.1/lb V2O5). Considering prices of downstream vanadium products keep moving down, he believes that mainstream prices of vanadium pentoxide flake 98%min would stay weak in the coming week.
With an annual production capacity of 5,400t, they produced about 2,000t in 2019 and plan to produce about 2,400t this year. They expect to produce about 180t in June, down by 20t from May due to lack of raw materials. They are producing for the signed orders now, holding no stocks at the moment.
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