BEIJING (Asian Metal) 29 Oct 19 – Currently, mainstream prices for Chinese vanadium nitride dropped to RMB168,000-171,000/t (USD30.9-31.4/kg V) EXW D/A 180 days, down by RMB7,000/t (USD1.3/kg V) from last week. As the market inventory level keeps high, most producers are in hurry to promote sales. Insiders believe prices of vanadium nitride would keep dropping in the coming week.
A producer in South China quotes their vanadium nitride at RMB170,000/t (USD31.3/kg V) EXW D/A 180 days and can accept RMB168,000/t (USD30.9/kg V) for firm bids, down by RMB7,000/t (USD1.3/kg V) from last week. “We just sold 20t at RMB168,000/t (USD30.9/kg V) Delivered D/A 180 days to one of our steel mill clients this Monday,” said the source. He added, “He received the current quotation for raw material vanadium pentoxide flake 98%min dropped to RMB112,000/t (USD7.3/lb V) EXW D/A 180 days, down by RMB7,000/t (USD0.5/lb V) from one week ago.” Considering the cost dropped, he believes prices of vanadium nitride would drop by RMB5,000/t in the coming week.
With an annual production capacity of 1,200t, they produced 50t in September and expect 30t in October, holding 50t of stocks now.
A trader in South China noted the current quotation for vanadium nitride he received stands at RMB170,000/t (USD31.3/kg V) EXW D/A 180 days, down by RMB5,000/t (USD0.9/kg V) from last week. “Prices are dropping, so we won’t consider to build stock in near term and we are watching the market now. According to our steel mill clients’ purchase target, I believe prices would drop to RMB165,000/t (USD30.3/kg V) at the end of October,” said the source. Their last deal was made two weeks ago, when they sold 30t at RMB195,000/t (USD35.8/kg V).
With a regular trading volume of 50tpm, they sold 500t in 2018 and have sold 270t this year. They expect to sell 30t in October, unchanged from September, holding no stock now, down by 20t from late last month.
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