BEIJING (Asian Metal) 11 Apr 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min are RMB172,000-175,000/t (USD11.9-12.1/lb V) EXW D/A 180 days, down by RMB15,000/t (USD1.0/lb V) from last week. As prices of downstream vanadium nitride keep dropping, insiders believe prices of raw material vanadium pentoxide flake would free fall in the coming week.
A producer in Northeast China quotes vanadium pentoxide flake 98%min at RMB175,000/t (USD12.1/lb V) EXW D/P and can sell at RMB175,000/t (USD12.1/lb V) EXW D/A 180 days for firm bids at the moment, down by RMB15,000/t (USD1.0/lb V) from last week. “I heard Jianlong company still quote at RMB220,000/t (USD15.2/lb V) EXW D/A 180 days at the moment. However, according to bidding prices for vanadium nitride of mainstream steel mills, we can at most sell at the current quotation for raw material vanadium pentoxide flake 98%min now,” said the source. He added, “Shougang Changzhi company made purchase for vanadium nitride at RMB245,000/t (USD47.4/kg V) delivered D/A 180 days last week, which means prices of raw material should keep around at RMB172,000/t (USD11.9/lb V). Considering prices of downstream vanadium products keep dropping, he believes prices of raw material would free fall in the coming week.
With an annual production capacity of 6,000t of vanadium pentoxide flake, they produced 150t in March and expect the same volume in April, holding 150t of stock now.
A consumer in Northwest China claimed that the highest price for raw material vanadium pentoxide flake 98%min they can bear stays at RMB172,000/t (USD11.9/lb V) EXW D/A 180 days at the moment, down by RMB17,000/t (USD1.2/lb V) from last week. “We buy vanadium pentoxide flake 98%min as raw material to produce vanadium nitride. We signed contract with steel mills at RMB250,000/t (USD48.4/kg V) delivered D/A 180 days, down by RMB20,000/t (USD3.9/kg V) from last week,” said the source. He added, “If prices of raw material vanadium pentoxide flake 98%min are higher than 172,000/t (USD11.9/lb V), then we will operate at a loss. According to orders for vanadium nitride from steel mills, he believes prices of raw material vanadium pentoxide flake would free fall in the coming week.
With an annual consumption capacity of 2,800t of vanadium pentoxide flake, they consumed 140t in March and expect the same volume in April, holding 70t of stock now.
http://www.asianmetal.com
