www.ferroalloynet.com: The price of domestic vanadium product accelerated to decline, with a weekly drop around 6000-14500 yuan/ton. At the beginning of this week, as the VN alloy tender price first began to decline, the price of the raw material side also declined. Under the conservative and cautious attitude in downstream buyers, it was hard to conclude the transaction. At the middle of this week, the tender price for VN alloy from Shaogang even fell below 180,000 yuan/ton, which indicated a glut condition. Coupled with the steel plants’ behaviour of bargaining for a lower price, the vanadium market continued to operate under the pressure. As of Friday, Jianlong had finalized the long-term price for V2O5 flake of April which was 120,000 yuan/ton. The future situation of the renewal order needs to be followed up.
1. Summary of Vanadium Biddiding in April 2023
|
Company
|
Products |
Price ( CNY/T) |
Quantity ( Ton) |
Basis |
Date |
|
Minyuan Iron and Steel |
VN16 |
191,800 |
30 |
cash with tax |
3rd April |
|
Guangxi Shenglong |
VN16 |
190,500 |
150 |
cash with tax |
3rd April |
|
Shanxi Hongda special steel |
VN16 |
192,000 |
15 |
cash with tax |
3rd April |
|
One steel mill in Fujian |
VN16 |
192,800 |
55 |
cash with tax |
3rd April |
|
Jiugang (headquarter) |
VN75 |
194,500 |
30 |
acceptance with tax |
3rd April |
|
One steel mill in Hunan |
VN16 |
193,000 |
20 |
acceptance with tax |
7th April |
|
One steel mill in Jiangsu |
VN16 |
188,000 |
30 |
acceptance with tax(include tender fee) |
7th April |
|
One steel mill in eastern China |
VN16 |
192,000 |
100 |
acceptance with tax |
7th April |
|
One steel mill in Jiangsu |
FeV50 |
128,500 |
20 |
acceptance with tax |
7th April |
|
Yunnan Qujing steel |
VN16 |
183,400 |
33 |
cash with tax |
10th April |
|
One steel mill in Henan |
FeV50 |
127,500 |
20 |
cash with tax |
11th April |
|
Yangchun New Iron and Steel |
VN16 |
181,000 |
90 |
acceptance with tax |
12th April |
|
One steel mill in Shandong |
VN16 |
179,000 |
30 |
cash with tax |
12th April |
|
Shaogang |
VN16 |
179,000 |
160 |
acceptance with tax |
12th April |
|
Egang |
FeV50 |
127,000 |
20 |
acceptance with tax |
13th April |
|
Egang |
VN16 |
179,000 |
20 |
acceptance with tax |
13th April |
|
One steel mill in Shandong(headquarters) |
FeV50 |
128,000 |
20 |
cash with tax |
13th April |
|
One steel mill in Shandong(Rizhao) |
FeV50 |
130,000 |
30 |
acceptance with tax |
13th April |
2. China vanadium market overview
Ammonium metavanadate market
This week, the decrement of the ammonium metavanadate price began to expedite which made the transaction hard to conclude. Under the influence of the slump of VN alloy price, the downstream buyers were pessimistic about the price of raw material. Coupled with the active shipment from V2O5 flake retailers, the price competition was sharpened. The transaction price of ammonium metavanadate decreased from 120,000-121,000 yuan/ton to 114,000-115,000 yuan/ton by cash, with a weekly drop about 6000 yuan/ton. The purchase attitude was very cautious in downstream side, most of the manufacturers held a wait-and-see attitude.
V2O5 Market
This week, the V2O5 flake continued to decline from 128,000-129,000 yuan/ton to 119,000-120,000 yuan/ton, with a weekly decrease about 9000 yuan/ton. Caused by decreasing VN alloy tender price, the V2O5 retailer constantly lowered their quotations in order to conclude transactions. However, the downstream buyers were quite conservative about purchasing. Thus the transaction was very limited. The market of chemical V2O5 flake were also disappointing. Due to the shrinking demands and bargain behaviour from downstream buyers, its price kept dropping and its transaction was quite indifferent as well.
Ferro-Vanadium Market
With a poor performance on the steel tender, the price of ferrovanadium was hard to revive, which dropped from 135,000-137,000 yuan/ton to 127,000-129,000 yuan/ton, with a weekly decrease about 8000 yuan/ton. The main reason of the price slump mainly laid in the sluggish demand and the expanding depressed raw material price. As most of the steel plant in the north China was under the suspension recently, the traders was more willing to ship. However, its transaction was still not ideal.
Vanadium Nitrogen Market
Even under the active steel tender and the stable purchase demand from some medium and large steel plants, the decline of tender price for VN alloy still accelerated, which even fell below the astonishing 180,000 yuan/ton price line. The price of VN alloy dropped from 193,000-196,000 at the beginning of this week to 179,000-181,000 yuan/ton. It was the unchanged glut condition and pessimistic attitude toward the future market from downstream buyers that caused such a rapid slump. Suffered from a high raw material price, the VN alloy plants could not make profits. Thus some of the VN alloy planned to suspend the production.
3. Vanadium worldwide market review
On April 12, European ferrovanadium was 37(↓0.3)-38.21(↓0.8)USD/kg v, converting into FeV50 about 127,200-131,300 CNY/T; European vanadium pentoxide was 10-10.26 USD/lb, converting into RMB about 148,500-152,400 CNY/T; American ferrovanadium was 19.5-20 USD /lb v, converting into FeV 50 about 147,800-151,600 CNY/T.
3. Forecast on next week
1. Depends on the demand: The steel tender will be relatively less next week. The market may enter the lull stage. Thus the demands will have a mediocre performance.
2. Depends on the supply: As some large V2O5 manufacturers were still under the maintenance, the production was slightly reduced. Coupled with the inversion between production cost and sale price, more and more VN alloy plants suspended production. Thus the tight supply and the unwillingness of sale made it hard to purchase at a low price.
3. Chengde Jianlong have settled the long-term price for the V2O5 flake. If the transaction is smooth, the vanadium market will be boosted.
To sum up, we forecast the domestic vanadium prices next week will be gradually stabilized in the standoff
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