BEIJING (Asian Metal) 30 May 19 – Sichuan Zhongyi Liankong Industrial Development Co., Ltd. has commenced construction of its 5,000tpy vanadium nitride project and the 1,000tpy Phase One is expected to go into operation at the end of 2019, a source from the company said.
“We plan to build five vanadium nitride production lines in total and have begun to build the first one now. We expect to put it into operation at the end of this year as the earliest. When to build the other four lines will depend on how the Phase One line goes on,” the source said. “Considering to choose Chinese producers of vanadium pentoxide flake as our priority raw material suppliers, we have signed cooperation agreements with large-sized vanadium pentoxide flake producers such as Sichuan Tranvic Group and Sichuan Desheng Iron and Steel. When the other four lines go into operation, we will import vanadium pentoxide flake from Australia,” the source added. Their company has already reached a framework purchase agreement with Australian vanadium pentoxide flake suppliers and will begin to import the material in three years, according to the agreement.
The company is located in Chengdu Gaoxin district of the Sichuan Free Trade Zone. When its vanadium nitride project goes into operation, products will be sold mainly to steel mills with whom the company has maintained long-term cooperation relations.
Currently in China, vanadium nitride prices have dropped to below RMB180,000/t (USD26,036/t), with its mainstream market prices in the range of RMB175,000-178,000/t (USD25,313-25,747/t) EXW D/A 180 days, down by RMB1,000/t (USD145/t) from yesterday. Affected by weak demand, most players in the vanadium nitride market are not so confident in future price trend, expecting its prices to be relatively stable in the coming week.
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