www.ferroalloynet.com: At present, some transactions still have a small weak decline. However, with the advent of the Mid Autumn Festival and National Day holidays, the number of suppliers turning to wait-and-see is also gradually increasing. The actual signed shipment volume of large factories is not large after pricing in the middle of the month. Steel mills are also expected to prepare raw materials before the festival. The actual shipment volume of large factories is not large, and only bulk cargo, small factory supply and import source may not be enough to support the production of manufacturers’ orders. Therefore, the retail raw material market purchased before the festival will return to the large factory price.
At present, the low spot transaction price of V2O5 flake is about 95500 yuan / ton by cash. The cost of purchasing raw materials at this price to produce VN alloy is about 145000-147000 yuan / ton by cash, and the cost of producing ferrovanadium is about 97000-98000 yuan / ton by cash. While the lowest selling price of VN alloy plant is about 148000 yuan / ton, and the purchasing price of steel plant in ferrovanadium market is around 102000 yuan / ton by acceptance. There are not many sources of raw materials with the price of 95500 Yuan/ton. Small manufacturers follow the market and most traders hold the goods at this time. Therefore, the raw material inventories of FeV and VN alloy plants are mostly purchased at high price in the early stage.
Although the current lowest price of V2O5 flake is appropriate, not all manufacturers can purchase goods with such price. In the later stage, with the steel plants entering the market, the alloy plant will also increase the raw material reserve. In the case that the large plants have not put V2O5 flake into the market, it is expected that the price of retail raw materials can stop falling in the active purchase. However, as the alloy market price has fallen, it is still difficult to support the market during the procurement period. It is expected that the final alloy market will be at a low level. Therefore, it is not likely that the price of retail V2O5 flake will rise during the procurement period. If the prices of retail raw materials are strong, the alloy plants will be more likely to reduce production due to cost hanging upside down. Moreover, if the raw materials of large factories do not ship before the festival and plus the output of 8-day holidays in the later period, the possibility of raw materials accumulation will be greater in the opening of the market after the festival. At that time, the decision-making of large factories will be important for the vanadium market. In addition, affected by the National Day holiday, the customs declaration and clearance process is expected to slow down. It is expected that the import of V2O5 flake and ferrovanadium arriving at the port at the end of September will be delayed until after the national holiday. Therefore, the domestic vanadium market price is expected to stop falling and operate at a low level in October.
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