BEIJING (Asian Metal) 2 Jul 20 – At the moment, consumers only purchase vanadium pentoxide flake 98%min according to urgent need and the market stays quiet. Mainstream prices of Chinese vanadium pentoxide flake 98%min stand at RMB105,500-107,500/t (USD6.9-7.1/lb V2O5) EXW D/A 180 days, edge down by RMB500/t (USD0.03/lb V2O5) from this Monday. As most buyers prefer to watch the market, insiders believe that mainstream prices of vanadium pentoxide flake 98%min would stay in a stalemate in the coming week.
“We just bought 32t of vanadium pentoxide flake 98%min at RMB105,600/t (USD6.9/lb V2O5) EXW D/P this Wednesday. We signed 112t of vanadium nitride orders and need to produce within this month, so we only buy raw material according to downstream orders,” a consumer in Northwest China said. Their last deal was made about two weeks ago, when they bought 32t at RMB112,000/t (USD7.3/lb V2O5). As prices of downstream vanadium nitride stay in a stalemate at the moment, he believes that mainstream prices of vanadium pentoxide flake 98%min would keep steady in the coming week.
With a consumption capacity of 2,560tpy, they consumed about 1,800t in 2019 and only about 670t in the first half of this year due to the COVID-19. They expect to consume about 170t in July, unchanged from June, holding about 150t of stocks now, unchanged from last month.
“We mainly supply with our regular clients at the moment and all dealing prices stand at RMB107,000/t (USD7.0/lb V2O5) EXW D/A 180 days during the past two weeks,” a producer in South China noted. They just finished the overhaul at the end of June and their monthly output would increase by 50% from June. However, due to the abundance of orders, they refuse to accept any orders below their current quotation. He believes that mainstream prices of vanadium pentoxide flake 98%min would stay firm in the coming week.
With an annual production capacity of 10,000t, they produced about 9,000t in 2019, up by 21.6% from last year and produced about 3,900t in total in the first half of this year, holding no stocks now.
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