BEIJING (Asian Metal) 27 Mar 20 – Benxi Iron & Steel (Group) Co., Ltd. plans to buy 30t of vanadium nitride in early April and their target price keeps at no more than RMB145,000/t (USD26.6/kg V) delivered D/A 180 days.
“I learnt most steel mills have finished their bidding at around RMB145,000/t (USD26.6/kg V) delivered D/A 180 days. We plans to buy 30t in early April and our target prices stay at no more than this price level, or we will delay the purchase,” said the source. He received the current prices of vanadium pentoxide flake 98%min stand at RMB93,000/t (USD6.1/lb V2O5) EXW D/P, which means the cost of vanadium nitride would be at least RMB145,000/t (USD26.6/kg V) EXW D/P. “The market supply of vanadium nitride stays loose and dealing prices are lower than the cost line for RMB3,000-4,000/t (USD0.6-0.7/kg V), which would force producers to cut production,” He added. He believes prices of vanadium nitride would keep weak in the coming week.
Located in Benxi, Liaoning, they are a typical vanadium nitride consumer in China. With an annual consumption capacity of 400t, they consumed 360t in 2019 and have consumed 80t so far this year. They expect to consume 30t in March, unchanged from February, holding 15t of stocks at the moment.
This Thursday, mainstream prices of Chinese vanadium nitride stand at RMB142,000-145,000/t (USD26.0-26.6/kg V) delivered D/A 180 days, the same as last week. Most suppliers struggle to guarantee their basic profit margin.
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