BEIJING (Asian Metal) 8 Jul 20 – Currently, mainstream prices of Chinese vanadium nitride stand at RMB164,000-167,000 (USD30.3-30.9/kg V) EXW D/A 180 days, up by RMB2,000/t (USD0.4/kg V) from late last week. Supported by the high cost of raw materials, few suppliers would like to accept orders for vanadium nitride at a low price level. Considering cheap resources reduced significantly during the past two weeks, insiders believe that mainstream prices of vanadium nitride would stay firm in the coming week.
“Our last deal was made two weeks ago, when we bought 100t of vanadium nitride at RMB162,000/t (USD29.9/kg V) delivered D/A 180 days. However, the current quotation I received increases to RMB168,000/t (USD31.1/kg V) now,” a consumer in South China said. They refuse to buy at such a high price level as he heard the cost of vanadium nitride stands at RMB165,000/t (USD30.5/kg V). They mainly consume the history stocks at the moment and prefer to purchase at the end of this month. Considering prices of vanadium pentoxide flake 98%min stand firm during the past week, he believes that mainstream prices of vanadium nitride would keep steady in the coming week.
With a consumption capacity of 1,200tpy, they consumed about 1,100t in 2019 and about 600t in the first half of this year. They expect to consume 100t in July, unchanged from May, holding about 300t of stocks now, up by about 100t from last month.
“I sent an inquiry for 30t this Monday and suppliers quote at around RMB166,500/t (USD30.8/kg V) delivered D/A 180 days, up by RMB1,500/t (USD0.3/kg V) from one week ago,” a consumer in North China said. He received the current prices of vanadium pentoxide flake 98%min at RMB107,000/t (USD7.1/lb V2O5) EXW D/A 180 days, unchanged from last week, which means the production cost of vanadium nitride stand at RMB165,000/t (USD30.5/kg V)t. Their target price still stand at RMB165,000/t (USD30.5/kg V) and they are still discussing with the suppliers at the moment. Considering the cost keeps firm during the past week, he believes that mainstream prices of vanadium nitride would keep steady in the coming week.
With an annual consumption capacity of 840t, they consumed about 360t in 2019 and about 180t so far this year. According to their downstream rebar orders, they expect to consume about 70t in July, up by 40t from June, holding about 30t of stocks now, unchanged from last month.
www.asianmetal.com
