www.ferroalloynet.com: In recent two days, there is sporadic bidding from steel plants, and the heat of supplementary bidding have gone, and the activity of spot circulation in vanadium market has also decreased. The long-term price hanging upside down of alloy products has caused the concern of hoarders. After a considerable profit space in recent days, they are in a hurry to sell. At present, the upstream and downstream vanadium products have risen and adjusted to the situation of profit. To ensure the stability of this situation, vanadium enterprises need to reduce excessive operation, and let the steel plant demand boost gradually guide the market.
1. Raw materials: bulk V2O5 flakes price increased
Under the influence of the price increase of most mainstream vanadium products, ammonium metavanadate manufacturers began to try to increase their prices this week. Although the chemical industry is still not fully recovered, the output of domestic ammonium metavanadate enterprises is relatively low, the output of Hunan Chuangda this month doesn’t reach the normal level, and the output of Shaanxi Huayuan in is also unstable due to the maintenance. The enterprises of ammonium metavanadate in Sichuan and Jiangxi began to sign the orders, and the price of chemical grade ammonium metavanadate is 94,000-95,000 Yuan/ton in cash with tax. At present, the transaction price of bulk V2O5 flake is 95,000 Yuan/ton in cash with tax. The market supply is tight, and most buyers are willing to accept the price of 95,000 Yuan/ton. However, it is difficult to deal with some suppliers who quoted at 96,000-97,000 Yuan/ton in cash.
2. FeV: weak demand
Although vanadium market has been active in recent days, ferrovanadium has always been relatively quiet, steel plants have less open procurement, domestic mainstream manufacturers’ direct supply accounts for a large number of transactions, traders dare not rush to operate due to the weak price, ferrovanadium manufacturers mainly maintain the orders of old customers, there are sufficient spot goods, the quotation remains unchanged under the influence of the strong V2O5 flakes, and the production is carried out with the order.
3. VN alloy: bidding price is far away from quoted price
According to yesterday’s steel bidding situation, the VN bidding price of JISCO reached 152,000 Yuan/ton. Considering the current bidding price of other steel plants, the bidding price purchased in the middle of the month can be basically locked above 150,000 Yuan/ton by acceptance. However, the steel plants who lost the bidding did not timely supplement the procurement, and turned to wait and see. It is expected to purchase in the last ten days of May. The quotation of VN alloy in bulk market is 146,500-147,000 Yuan/ton in cash with tax. Their sales are good and positive. The traders who intend to store goods are hesitant to operate. The price of VN alloy is rising slowly. Some manufacturers have signed the order for July under current favorable market. At the same time, they are actively purchasing V2O5 flakes, which will lead to the gradual contraction of later VN spot goods and the increasing tension of V2O5 flakes, thus supporting the later vanadium price to be stable and upward.
In terms of terminal, the price of rebar has been rising rapidly since May. Up to now, the average price of HRB400 in major cities in China has remained at a high level of 3850 Yuan/ton. Compared with last week, this week, the output of rebar increased by 123,300 tons, the inventory of manufacturers decreased by 365,700 tons, and the social inventory decreased by 560,000 tons. The rebar market is still in a favorable state of increased output and decreased inventory. The terminal demand in the later market still has a sustained driving force.
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