BEIJING (Asian Metal) 19 Jul 19 – Due to serious environmental protection situation, Tangshan Yiliansheng Roll Co., Ltd., with an annual demand of 360t of ferrovanadium, halted production early this week. The company plans to resume production two months later and suspend ferrovanadium purchase during the suspension, a source told Asian Metal.
“Currently, all foundry enterprises in Tangshan are out of production with the main reason of serious environmental protection. We also shut down the production line early this week. Now, the inventory of ferrovanadium can support production for a month,” said the source. The company uses hot rolling technology and takes many kinds of ferroalloys including ferrovanadium as raw material. It is out of production now and waits on the sidelines and all the purchasing plan of raw material is put off until the resumption of production.
The company is located in Tangshan, Hebei. It consumed 10t of ferrovanadium before the suspension in June, down by 10t from May, and holds 20t of stocks now.
Currently, mainstream prices for Chinese ferrovanadium 50%min are RMB130,000-133,000/t (USD37.6-38.5/kg V) EXW D/A 180 days, up by RMB1,000/t (USD0.3/kg V) from early this week. Due to the slight increase of prices for raw material vanadium pentoxide flake, ferrovanadium producers intentionally hold back from selling. Thus, Chinese ferrovanadium prices are expected to keep firm in the coming week.
www.asianmetal.com
