BEIJING (Asian Metal) 11 Jun 20 – Currently, mainstream prices of Chinese ferrovanadium 50%min stand at RMB108,000-110,000/t (USD30.6-31.1/kg V) EXW D/P, edge down by RMB2,000/t (USD0.6/kg V) from early last week. End consumers only purchase according to urgent need and the market demand stays quiet. However, due to the high cost of raw material, insiders believe that mainstream prices of Chinese ferrovanadium would keep steady in the coming week.
“I received the current prices of raw material vanadium pentoxide flake 98%min stand at around RMB109,000/t (USD7.2/lb V2O5) EXW D/P,” a producer in Northeast China said. Supported by the high cost, they tried to increase their quotation for ferrovanadium 50%min accordingly but no buyers would like to purchase. In order to promote sales, they quote RMB110,000/t (USD31.1/kg V) EXE D/P and could accept RMB109,000/t (USD30.9/kg V) for firm bids more than 10t. They insisted on RMB112,000/t (USD/31.7kg V) or would not accept any orders last week. At the moment, few of their clients would like to purchase. However, due to the high cost, he believes that mainstream prices of ferrovanadium 50%min would stay steady in the coming week.
With an annual production capacity of 1,200t, the company produced about 560t in 2019 and only about 120t in the first five months this year due to the COVID-19. They expect to produce 50t in June, up by 20t from May, holding 30t of regular stocks, unchanged from last week.
‘We sold 20t of ferrovanadium 50%min at RMB108,000/t (USD30.6/kg V) EXW D/P this Tuesday,” a trader in North China noted. They tried to quote RMB110,000/t (USD31.1/kg V) EXW but no buyers would like to accept as prices start to drop again. Most of their clients prefer to watch the market at the moment. As major producers of vanadium pentoxide flake 98%min published their long-term agreement prices this Monday, which are much lower than spot market prices, he believes that prices of ferrovanadium 50%min would stay weak in the coming week.
They do back to back trading and the volume depends on orders. They sold 20t in May and expect 40t in June, holding no stocks now.
www.asianmetal.com
