Analysis On Domestic Vanadium Market On June 2, 2020
www.ferroalloynet.com: With the pricing of large factories, the price of the raw material has been temporarily settled. As far as the cost is concerned, downstream alloy manufacturers have certain profit space, with high production enthusiasm. The alloy plants are still waiting for further rise. It is expected that the alloy factories will be more active to sign the orders for procurement of raw materials. With the breakthrough increase of steel production and further increase of steel price, the terminal demand for alloys also keeps a good trend. It is expected that vanadium price will continue to be stable and progressive.
1. Large V2O5 flake factories priced at 100,000 Yuan/ton by acceptance with tax
The large V2O5 flake factories have adjusted the quotation to 100,000 Yuan/ton by acceptance and started to sign the orders. The tight raw materials of long-term customers can be eased in a short time. However, some manufacturers without long-term agreement still inquiry in bulk market. At present, traders have more V2O5 flake in stocks, and they are looking forward to increase the price of V2O5 flake. The quotation is as high as 105,000 Yuan/ton or above. According to our understanding, at present, the actual transaction price of V2O5 flake in bulk market is about 103,000 Yuan/ton in cash. After the large factory pricing, it is expected that the market price will continue to remain strong.
2. FeV bidding price is temporarily stable
According to the current bidding situation of steel plants, the bidding price of FeV is stable at about 107,000-108,000 Yuan/ton by acceptance, and the high price has no practical guiding significance for the market. According to the suppliers, the current transaction price of FeV market is mainly 105,000 Yuan/ton in cash, and it is temporarily difficult to deal with the high price. The transaction price of some high-quality FeV50A is about 106,000 Yuan/ton in cash. Due to the rapid increase of FeV price in recent two days, FeV inquiry in the market has increased, but most of inquiries are from traders.
3. The trading price of VN alloy rose again
Up to now, the market quotation of VN alloy is relatively chaotic and generally high. The quotations of manufacturers and traders vary from 165,000 Yuan/ton to 170,000 Yuan/ton by acceptance. According to statistics, the actual transaction price is between 161,000 Yuan/ton and 163,000 Yuan/ton in cash, a slight increase compared with yesterday. The bidding price of steel plants is also between 164,000 Yuan/ton to 165,000 Yuan/ton by acceptance.Large V2O5 flake plants are priced at 100,000 Yuan/ton, which has left enough profit space for VN alloy manufacturers. It is expected that it will be difficult for the follow-up market to continue to rise rapidly, and the market will move towards a stable, medium and small rise stage.
4. Good supply and demand of rebar market
After the active production in May and the construction peak in the downstream of steel, the output of rebar basically reached the peak at the end of May, and the price continued to rise again from the end of May. Up to now, the price of domestic three-level rebar has approached 4000 Yuan/ton. Due to the arrival of the rush to resume production peak, it is expected that the follow-up market output will continue to rise to a limited extent. This year, the infrastructure sector is the main steel consumption. From June to July, many large-scale infrastructure projects will be launched. It is expected that the demand will remain strong, providing downstream support for vanadium alloy consumption. However, it is necessary to be careful about the force majeure factors of high temperature and rainy season. After the end of the two sessions, the limit production in Beijing, Tianjin and Hebei regions will be loose, and the steel production will increase.
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