BEIJING (Asian Metal) 10 Jul 20 – Due to the thin profit, suppliers of vanadium nitride have a strong willingness to increase their prices. At the moment, mainstream prices of Chinese vanadium nitride stand at RMB166,000-169,000 (USD30.9-31.4/kg V) delivered D/A 180 days, up by RMB2,000/t (USD0.4/kg V) from this Tuesday. Considering prices of raw materials stand steady during the past week, insiders believe than mainstream prices of vanadium nitride would keep firm in the coming week.
“Our last deal was made on 3 June, when we bought 60t at RMB162,500/t (USD30.2/kg V) delivered D/A 180 days. The current prices increase to about RMB168,000/t (USD31.2/kg V) now and few suppliers would like to drop their quotation due to the high cost of raw material,” a consumer in South China said. They plan to purchase for 60-90t at the start of August. He received the current price of vanadium pentoxide flake 98%min at RMB105,500/t (USD7.0/lb V2O5) EXW D/P, the same as last week. Supported by the high cost, he believes that mainstream prices of vanadium nitride would stay firm in the coming week.
With an annual consumption capacity of 1,200t, they consumed about 1,000t in 2019 and about 540t in the first half of this year. They expect to consume about 90t in July, unchanged from June, holding about 60t of stocks now, the same as last month.
“Prices of raw material vanadium pentoxide flake 98%min stand firm at RMB105,000/t (USD7.0/lb V2O5) EXW D/P during the past week. Even we sell at RMB170,000/t (USD31.6/kg V) delivered D/A 180 days for our vanadium nitride, we could only earn RMB3,000/t (USD0.6/kg V),” a producer in South China noted. According to the price of raw material, their production cost stands at RMB165,000/t (USD30.7/kg V). If add the freight for raw material and their vanadium nitride, they need at least another RMB2,000/t (USD0.4/kg V). They could accept at least RMB169,000/t (USD31.4/kg V) delivered D/A 180 days for firm bids more than 20t and won’t accept any orders below this price level. Their last deal was made this Wednesday, when they sold 20t at RMB168,500/t (USD31.3/kg V) EXW D/A 180 days. Supported by the high cost, he believes that mainstream prices of vanadium nitride would keep firm in the coming week.
With a production capacity of 1,200t, they produced about 1,000t in 2019 and about 450t in the first half of this year. They expect to produce 80t in July, down by 10t from June, holding about 20t of regular stocks, unchanged from last month.
www.asianmetal.com
