www.ferroalloynet.com:With the bidding pricing results of a small number of steel mills coming out, the price of VN alloy continues to rise compared with the previous period, and the manufacturers’ attitude of supporting price is more obvious. Raw material end market turnovers are not much, trading light, price deadlock. In July, the cost of alloy was fixed by large V2O5 flake factories. Alloy manufacturers can only insist on supporting prices in order to make profits. However, due to the lack of demand and strong competition pressure, ferrovanadium is still dominated by weak situation in the short term, which is almost contrary to the trend of VN alloy. In the short term, as many mines are inviting tenders, there may still room for VN alloy price rise.
From the beginning of the intention to support the price of VN alloy, large-scale VN alloy plants began to purchase V2O5 flake in bulk market. The large factories signed orders normally. At present, the volume of V2O5 flake in bulk market gradually decreased. The market quotation was 106000 Yuan / ton by cash, and the actual transaction volume was still 105500 Yuan / ton. Due to the fact that VN alloy is still in the stage of price rising and no stable results have been achieved, the procurement of high price V2O5 flake were still cautiously made by the manufacturers. In addition, the cost pressure of ferrovanadium manufacturers is relatively high, and the purchase of raw materials is reduced. Therefore, the V2O5 flake market will maintain a weak and stable situation in the short term.
Based on 105500 Yuan / ton of V2O5 flake price in the market, the cost of ferrovanadium50 is about 105000-106000 Yuan / ton, and the price is calculated according to the low processing fee. If the processing cost of some manufacturers is slightly higher, it is more difficult to continue production. Therefore, ferrovanadium plants in Jinzhou area have recently reduced or have stopped production, as well as some ferrovanadium plants in Jiangxi. The bulk market of ferrovanadium is still active, with a low turnover of 103000-103500 Yuan / ton. At the same time, ferrovanadium manufacturers are facing pressure from high price raw materials, competition from large ferrovanadium plants and low-cost bulk goods, making it difficult to survive.
The price of VN alloy in steel bidding yesterday was basically 165000-166000 Yuan / ton by acceptance, and part of the price was 163000 Yuan / ton by cash. Benxi Steel bid for 30 tons of VN alloy opened at 10:00 am today. Shougang Changzhi issued a bid to purchase 170 tons of VN alloy. The final price and quantity of Laiwu Steel are expected to be finalized today. From the current price point of view, compared with the previous stage to a higher level, the market mentality has some support to continue to support the price. It is hard for the traders who offer 160000-161000 Yuan / ton by cash to buy spots in bulk market, as the manufacturers unified quotation at 165000 Yuan / ton by cash.
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