BEIJING (Asian Metal) 11 Feb 20 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB156,000-159,000/t (USD29.0-29.6/kg V) EXW D/A 180 days, up by RMB5,000/t (USD0.9/kg V) from last week. As the physical distribution cannot restart in China, few producers can replenish their raw material inventory, which would limit the supply of vanadium nitride. Insiders believe that prices of Chinese vanadium nitride would keep increasing in the coming week.
A producer in Northeast China quoted their vanadium nitride at RMB158,000/t (USD29.4/kg V) EXW D/A 180 days and they won’t accept any discount for firm bids at the moment for lack of raw materials, up by RMB8,000/t (USD1.5/kg V) from last week. “Our last deal was made in the middle of last week, when we sold 30t at RMB150,000/t (USD27.9/kg V) and we delivered to the client by ourself as the physical distribution can’t work,” said the source. He added, “I received the current price for vanadium pentoxide flake 98%min increased to RMB96,000/t (USD6.3/lb V2O5) EXW D/P now and the overseas supplyer even increased to RMB106,000/t (USD7.0/lb V2O5) now.” Considering the cost keeps going up, he believes that prices of vanadium nitride would increase above RMB160,000/t (USD29.8/kg V) in the coming week.
With an annual production capacity of 1,200t, they produced 90t in January and expect 70t in February for lack of raw materials, holding 20t of stocks at the moment.
A trader in Northwest China claimed the current price for vanadium nitride he received stands at RMB155,500/t (USD28.9/kg V) EXW D/P and they can buy at RMB155,000/t (USD28.8/kg V) for firm bids, up by RMB5,000/t (USD0.9/kg V) from last week. “I heard from my steel mill client that they just bought 30t at RMB159,000/t (USD29.6/kg V) Delivered D/A 180 days. I believe most bidding prices of other steel mills would touch this price level soon,” said the source. He added, “I prepare to buy 30t in the coming days this week in spot market at no more than RMB155,000/t (USD28.8/kg V). However, the producer told me that they can’t accept as the physical distribution is out of service now.” He believes that prices of Chinese vanadium nitride would increase by RMB5,000/t (USD0.9/kg V) in the coming week.
With a regular trading volume of 80tpm, they sold 600t in 2019, down by 400t from 2018. They expect to sell 60t in February, down by 20t from January. Holding no stocks now, down by 50t from last month.
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