BEIJING (Asian Metal) 16 Aug 19 – Currently, mainstream prices for Chinese vanadium pentoxide powder 98%min stand at RMB134,000-138,000/t (USD8.8-9.1/lb V2O5) EXW D/P, down by RMB15,000/t (USD1.0/lb V2O5) from last week. As prices of downstream vanadium products keep dropping, insiders believe pirces of vanadium pentoxide powder would drop further in the coming week.
A consumer in Anhui claimed the lowest quotation for vanadium pentoxide powder 98%min he received dropped to RMB135,000/t (USD8.9/lb V2O5) EXW D/P, down by RMB15,000/t (USD1.0/lb V2O5) from last week. “We bought 10t at RMB150,000/t (USD9.9/lb V2O5) early August. We never expect prices will fall so fast but it really happened. I believe the mainreason is bidding prices for vanadium nitride of major steel mills dropped,” said the source. He added, “I heard Zhongtian steel company bought 180t vanadium nitride at RMB210,000/t (USD38.7/kg V) this Tuesday, down by RMB45,000/t (USD8.3/kg V) from the peak in the early of this month.” He believes prices of vanadium pentoxide powder 98%min would drop to RMB132,000/t (USD8.7/lb V2O5) in the coming week.
With an annual consumption capacity of 600t for vanadium pentoxide powder 98%min, they consumed 30t in July and expect the same volume in August, holding 15t of stocks now.
A trader in Jiangsu quotes their vanadium pentoxide powder 98%min at RMB140,000/t (USD9.2/lb V2O5) EXW D/P and can accept RMB138,000/t (USD9.1/lb V2O5) for firm bids, down by RMB12,000/t (USD0.8/lb V2O5) from last week. “We build stock at RMB135,000/t (USD8.9/lb V2O5) and we must guarantee a minimum profit of RMB3,000/t (USD0.2/lb V2O5),” said the source. Their last deal was made late last month, when they bought 30t at RMB135,000/t (USD8.9/lb V2O5). Considering inquiries are hard to see at the moment, he believes mainstream prices would drop by RMB2,000/t (USD0.1/lb V2O5) in the coming week.
With a regular trading volume of 50tpm, they sold 400t last year and have sold 250t this year. They sold 30t in July and prepare to sell 40t in August, holding 40t of stocks now.
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