BEIJING (Asian Metal) 6 Jul 20 – Currently, mainstream prices of European ferrovanadium 80%min stand at USD22.7-23.7/kg V in warehouse Rotterdam, down by USD1/kg V from one week ago. Due to the COVID-19 and the coming summer holiday, inquiries from end consumers stay rare and suppliers have to drop their quotation to promote sales. Considering the gloomy outlook for market demand, insiders believe that mainstream prices of European ferrovanadium would stay weak in the coming week.
“It’s no meaning to quote a high price level as inquiries stay rare now. We dropped our quotation from USD24/kg V in warehouse Rotterdam to USD23/kg V during the past week but still hard to close deals,” a trader in Middle Europe said. Their last deal was made late last Thursday, when they sold 20t at USD22.7/kg V. Due to the COVID-19, their regular clients reduced the consumption by about 30%. Considering the demand stays soft, he believes that mainstream prices of European ferrovanadium 80%min would keep weak in the coming week.
With a regular trading volume of 300tpm for ferrovanadium, they only supply with their regular clients this year. They sold about 200t in June and expect no more than 200t in July, holding about 100t of regular stocks now, unchanged from last month.
“As inquiries from end consumers stay rare, we drop our quotation to USD23.7/kg V in warehouse Rotterdam. However, no consumers would like to purchase at above USD23.5/kg V now,” another trader in middle Europe noted. Though some traders sell at a lower price level to reduce stocks, in order to guarantee their basic profit, they won’t follow up the dropping trend. They would not accept any orders below USD23.5/kg V now. Considering the summer holiday is coming, he believes that European ferrovanadium 80%min market would stay quiet in the coming week.
With a regular trading volume of 60tpm, they sold about 600t in 2019 and about 240t in the first half of this year. They sold about 40t in June and expect the same volume in July, holding about 40t of regular stocks.
www.asianmetal.com
