BEIJING (Asian Metal) 21 Jun 19 – Currently, mainstream transaction prices for Chinese vanadium pentoxide powder 98%min stay at RMB126,000-129,000/t (USD8.5-8.7/lb V) EXW D/P, unchanged from early this week. Most suppliers hold back from selling to keep their prices firm, but downstream purchases do not grow accordingly, making it difficult for vanadium pentoxide powder prices to go up. Insiders believe that prices for Chinese vanadium pentoxide powder would stabilize in the coming week.
A consumer in South China reveals that their supplier quotes vanadium pentoxide powder 98%min at RMB130,000/t (USD8.8/lb V) EXW D/P now and can conclude sales at RMB129,000/t (USD8.5/lb V), unchanged from early this week. “Now suppliers are unwilling to make sales at low prices. We neither have intention to purchase the material in large quantities, but instead make purchases on rigid demand. I believe that there would be no notable changes in vanadium pentoxide powder prices in the coming week,” the source said. They last purchased 5t of the material at RMB129,000/t (USD8.5/lb V) early this week.
With an annual consumption capacity of 240t of vanadium pentoxide powder, the source expects to consume 15t in June, unchanged MOM, and holds 15t of stocks now.
A consumer in Northwest China reveals that most of their suppliers quote vanadium pentoxide powder 98%min at around RMB128,000/t (USD8.6/lb V) EXW D/P now, unchanged from early this week. “Last week when we made enquiries, quotations we received were all below RMB125,000/t (USD8.4/lb V). They have risen to the current level and then stop going up further. I think that this is a signal that the market is entering a stable stage,” the source said. They last purchased 30t of vanadium pentoxide powder 98%min at RMB120,000/t (USD8.1/lb V) in early June. According to the source, downstream steel mills still need some time to make their vanadium purchasing prices catch up with the upward movement in raw material prices, therefore failing to help drive vanadium pentoxide prices up further, so he believes that vanadium pentoxide powder prices would still be unchanged in the coming week.
With an annual consumption capacity of 600t of vanadium pentoxide powder, the source expects to consume 30t in June, unchanged MOM, and holds 15t of stocks now.
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