Vanadium Weekly Review During 14-18 August, 2023

www.ferroalloynet.com: This week, the turnover in the vanadium market continued to drop slightly, and the transaction price of vanadium products fell by 1,000-3,500 CNY/T. Due to the lack of steel recruitment in the middle of the month and the loosening of raw material prices, the overall transaction of vanadium nitrogen alloys fell under pressure to 159,000-160,000 CNY/T by acceptance. The transaction pace of ferrovanadium has slowed down, and the mainstream price has slightly loosened to 115,000-116,000 CNY/T by acceptance. The high pressure on alloy production costs has led to a continuous decline in V2O5 flakes purchase expectations. Some V2O5 flakes retail investors offered to sell at lower prices one after another, and retail V2O5 flakes transactions continued to drop to about 103,000-104,000 CNY/T in cash. Affected by the psychology of buying up and not buying down, downstream purchases are extremely cautious, mainly based on rigid-demand transactions. This week, the overall transaction atmosphere of vanadium products is relatively light, and the transaction volume is small.

1. Summary of Vanadium Biddiding in August 2023

Company	Products	Price ( CNY/T)	Quantity ( Ton)	Basis	Date
Shougang Changzhi	VN16	167,400	20	Acceptance with tax	31^st July
One steel mill in Southwest	FeV50	115,500	99	Acceptance with tax	1^st Aug
Shougang Tonggang	FeV50	115,000	7	Cash with tax	1^st Aug
One steel mill in Henan	FeV50	115,000	20	Cash with tax	1^st Aug
One steel mill in Shandong	FeV50	117,000 (headquarters)	50	Cash with tax	1^st Aug
Guangxi Shenglong	VN16	162,000	70	Cash with tax	1^st Aug
Longteng Special Steel	FeV50	117,500	20	Acceptance with tax	1^st Aug
One steel mill in Fujian	VN16	161,770	50	Cash with tax	2^nd Aug
JISCO (headquarters)	FeV50	121,000	30	Acceptance with tax	2^nd Aug
One steel mill in East China	VN16	164,300	110	Cash with tax	2^nd Aug
One steel mill in Hebei	FeV80	185,000	20	Acceptance with tax	3^rd Aug
One steel mill in Hebei	V75N16	163,500	30	Acceptance with tax	3^rd Aug
One steel mill in Jiangsu	VN16	165,000	60	Acceptance with tax	3^rd Aug
Anhui Changjiang	VN16	163,000	100	Acceptance with tax	7^th Aug
Yunnan Chenggang	VN16	161,500	30	Cash with tax	7^th Aug
Shaogang	FeV50	115,700	60	Acceptance with tax	7^th Aug
Shaogang	VN16	161,800	140	Acceptance with tax	8^th Aug
EGANG	VN16	161,800	15	Acceptance with tax	8^th Aug
EGANG	FeV50	115,700	20	Acceptance with tax	8^th Aug
Shougang Changzhi	VN16	162,450	20	Acceptance with tax	9^th Aug
One steel mill in Central China	FeV50	116,500	10	Acceptance with tax	9^th Aug
One steel mill in Hunan	FeV50	115,800	30	Acceptance with tax	10^th Aug
One steel mill in Liaoning	V77N16	164,000	75	Acceptance with tax	10^th Aug
Kunming Iron & Steel (Anning Base)	V77N16	158,400	20	Cash 60% +6 month bank acceptance 20% +6 month commercial acceptance 20%	11^th Aug
One steel mill in Fujian	VN16	158,500	33	Cash with tax	11^th Aug
Hubei Jin Shenglan	VN16	160,000	20	Cash with tax	11^th Aug
One steel mill in Central China	FeV50	116,500	10	Acceptance with tax	14^th Aug
Zenith Steel Group (Changzhou)	FeV50	115,000	20	Acceptance with tax	14^th Aug
Minyuan Iron & Steel	V77N16	157,000	20	Cash with tax	14^th Aug
One steel mill in Shandong	FeV50	116,500 (Rizhao)	30	Acceptance with tax	15^th Aug
One steel mill in Shandong	FeV50	115,500 (headquarters)	30	Cash with tax	15^th Aug
One steel mill in Shandong	VN16	157,500	80	Cash with tax	18^th Aug

2. China vanadium market overview

Ammonium metavanadate market

This week, the transaction of ammonium metavanadate was slightly lowered from 101,000-102,000 CNY/T to 100,000-101,000 CNY/T in cash, down 1,000 CNY/T from last week. The price of V2O5 flakes continued to fall, and the downstream did not take orders for the high price of ammonium metavanadate. The inquiries from some alloy factories were expected to drop to less than 100,000 CNY/T in cash. However, when the transaction reached near the cost line, ammonium metavanadate manufacturers became more reluctant to sell, making it difficult to inquire for supply at low prices, and the supply and demand sides were at a stalemate.

V2O5 Market

This week, the transaction of retail V2O5 flakes continued to decline slightly, and the mainstream transaction fell from 106,000 CNY/T in cash to 103,000-104,000 CNY/T in cash, a drop of about 2,500 CNY/T from last week. Downstream alloy transactions are weakening, and V2O5 flakes are difficult to trade at high prices. In addition to the news of steel mills limiting production in some areas in recent days, a small number of holders are not optimistic about the market outlook for the time being, and take the initiative to sell at a lower price. Influenced by the psychology of buying up and not buying down, the downstream has a strong wait-and-see sentiment towards V2O5 flakes. At the end of the month, the steel recruitment has not yet started, and the overall procurement of the alloy factory is relatively cautious. There are few inquiries and transactions of V2O5 flakes from retail sellers.

Ferro-Vanadium Market

This week, the transaction of ferrovanadium was stable and weak, and the mainstream transaction fell slightly from 116,000-117,000 CNY/T by acceptance to 115,000-116,000 CNY/T by acceptance, which was about 1,000 CNY/T lower than last week. V2O5 flakes prices fell, cost support being weak, and ferrovanadium steel recruitment were slightly lowered. However, most ferrovanadium manufacturers have little pressure to produce according to orders recently, and the high quotations in the market have decreased, but most are not lower than 115,000 CNY/T in cash. The market is dominated by traders’ shipments, while retail transactions remain light.

Vanadium Nitrogen Market

The transaction of vanadium nitrogen alloys dropped the most this week, from 162,000-164,000 CNY/T by acceptance to 159,000-160,000 CNY/T by acceptance, down about 3,500 CNY/T from last week. In the middle of the month, due to the small amount of steel recruitment and the drop in the price of V2O5 flakes, individual vanadium nitrogen alloy steel recruitment were under pressure to decline. Traders are making great efforts to lower the price of inquiries, but there are few actual orders. The production of vanadium nitrogen alloys is still hovering on the cost line, and most manufacturers suspend quotations until the steel recruitment is clear at the end of the month.

3. Vanadium worldwide market review

On August 16, European ferrovanadium was 31.5-33.26 USD/Kg V, equivalent to the price of ferrovanadium50 about 113,400-119,900 CNY/Ton; European vanadium pentoxide was 7.7-8.76 USD/Lb, equivalent to vanadium pentoxide98% about 119,800-136,200 CNY/Ton; U.S. ferrovanadium was 15.75-16.5 USD/Lb V, equivalent to the price of ferrovanadium50 about 124,900-130,800 CNY/Ton.

4. Forecast on next week

Affected by the news of steel mills’ production restriction in some areas, as well as the lack of recruitment of alloy steel and thin transactions in the middle of the month, the pessimism of the vanadium market has increased slightly. However, considering the high cost of stockpiling for most V2O5 flakes retail investors in the early stage, it is expected that the downside of raw materials will be limited for the time being. The demand is weak, but the bottom of the vanadium alloy is still supported. The market may still fluctuate within a narrow range next week, so pay attention to the progress of steel recruiting at the end of the month.

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