Analysis On The Cost Of VN Alloy in December 2020

www.ferroalloynet.com: In December, as V2O5 flake is “tight” and downstream demand is still good,the overall vanadium market is strong. To late December, due to the traders who early cover goods began to ship, and the V2O5 flake rush high back, which is from the highest cash of 100,000-101,000 yuan/ton gradually fell to cash of 94,000-95,000 yuan/ton at the end of the month. VN alloy transaction price is closely following the adjustment of raw material V2O5 flake ; in the jumping stage, the high price transaction is not much, mainly to scattered transactions. Calculate the cost of VN alloy in December (V2O5 flake*1.42+ 10,000 processing fee), to understand the overall production situation of the alloy plant.

Date Average price (V2O5 flake)   Cost price (VN Alloy) Transaction price(VN Alloy) Unit
1-Dec 84000 129300 130000 Yuan/Ton Acceptance with tax
2-Dec 84000 129300 131500 Yuan/Ton Acceptance with tax
3-Dec 84000 129300 132000 Yuan/Ton Acceptance with tax
4-Dec 84750 130300 132000 Yuan/Ton Acceptance with tax
7-Dec 84750 130300 132000 Yuan/Ton Acceptance with tax
8-Dec 84750 130300 132000 Yuan/Ton Acceptance with tax
9-Dec 84750 130300 132000 Yuan/Ton Acceptance with tax
10-Dec 85250 131100 132000 Yuan/Ton Acceptance with tax
11-Dec 85250 131100 132000 Yuan/Ton Acceptance with tax
14-Dec 86000 132100 133000 Yuan/Ton Acceptance with tax
15-Dec 86000 132100 133000 Yuan/Ton Acceptance with tax
16-Dec 86000 132100 133000 Yuan/Ton Acceptance with tax
17-Dec 88000 135000 137000 Yuan/Ton Acceptance with tax
18-Dec 89000 136400 139000 Yuan/Ton Acceptance with tax
21-Dec 90000 137800 142500 Yuan/Ton Acceptance with tax
22-Dec 92000 140700 144500 Yuan/Ton Acceptance with tax
23-Dec 96000 146300 150000 Yuan/Ton Acceptance with tax
24-Dec 99500 151300 153000 Yuan/Ton Acceptance with tax
25-Dec 99500 151300 153000 Yuan/Ton Acceptance with tax
28-Dec 98500 149000 153000 Yuan/Ton Acceptance with tax
29-Dec 97500 148500 153000 Yuan/Ton Acceptance with tax
30-Dec 97000 147700 149500 Yuan/Ton Acceptance with tax
31-Dec 96000 146200 149500 Yuan/Ton Acceptance with tax

As can be seen from the above figure, the transaction price of VN alloy in December is generally higher than the cost price, but the profit is not high. As V2O5 flake and VN alloy promote each other, the alloy plant as a whole is still relatively passive, and V2O5 flake rises too fast, pushing the price of VN alloy to rise, but the transaction lag and the high transaction is less, so most of the alloy plant are in the early order of delivery. In December terminal purchase is good, and inquiries do not reduce, which is also the support of the market.

As a whole, VN alloy manufacturers in December build to order with slightly profit, but production enthusiasm is not being decreased.

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