www.ferroalloynet.com: Since April, the vanadium market has been in a downturn trend. Downstream alloy manufacturers are under pressure to produce under the impact of high-price raw materials and weak demand. The cost of VN alloy is calculated from the V2O5 flakes. In April, the VN alloy production cost and market price were hung upside down seriously, which is also the main reason why the output of VN alloy dropped by more than 400 tons in April. Due to the continuous pressure from high-price raw material side, the VN alloy factories are striving to reduce the cost except the cost of V2O5 flakes. If the processing cost is 10,000-12,000 Yuan/ton and use the average price of 11,000 Yuan/ton to calculate, the cost trend of VN alloy in April can be roughly obtained as follows:
| Date | V2O5 flake average price | VN average price | VN production cost | Unit: Yuan/ton |
| April-1 | 93250 | 142500 | 143400 | Cash with Tax |
| April-2 | 93250 | 141500 | 143400 | Cash with Tax |
| April-3 | 93250 | 141500 | 143400 | Cash with Tax |
| April-7 | 93250 | 141500 | 143400 | Cash with Tax |
| April-8 | 93250 | 141500 | 143400 | Cash with Tax |
| April-9 | 93250 | 141500 | 143400 | Cash with Tax |
| April-10 | 93250 | 141500 | 143400 | Cash with Tax |
| April-13 | 92500 | 141500 | 142350 | Cash with Tax |
| April-14 | 92500 | 141500 | 142350 | Cash with Tax |
| April-15 | 92500 | 141500 | 142350 | Cash with Tax |
| April-16 | 92750 | 141500 | 142700 | Cash with Tax |
| April-17 | 92750 | 141500 | 142700 | Cash with Tax |
| April-20 | 92750 | 141500 | 142700 | Cash with Tax |
| April-21 | 92750 | 141500 | 142700 | Cash with Tax |
| April-22 | 93750 | 141500 | 144100 | Cash with Tax |
| April-23 | 94250 | 141500 | 144800 | Cash with Tax |
| April-24 | 94250 | 142500 | 144800 | Cash with Tax |
| April-26 | 94250 | 143500 | 144800 | Cash with Tax |
| April-27 | 94250 | 143500 | 144800 | Cash with Tax |
| April-28 | 94250 | 143500 | 144800 | Cash with Tax |
| April-29 | 94250 | 143500 | 144800 | Cash with Tax |
From the above chart, it can be clearly seen that the VN alloy is in a state of hanging upside down all month in April. The price rise of VN alloy at the end of April is still a passive price rise after the price rise of V2O5 flakes, lagging behind the cost rise. Therefore, the pressure for alloy manufacturers doubled in April, and the only good thing is demand recovered. Although the rise of raw material price increases the pressure of downstream processing plants, but in a certain sense, it also plays a role in supporting the market, so that the high cost alloy inventory in the early stage does not depreciate. According to the current market performance, it is expected that the cost line of VN alloy will be stable for a period of time, while the market price of VN alloy still has a little room for improvement, and it is expected that it can jump out of the inverted situation at least in May.
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