Analysis On The Inventory Of Vanadium Products In June 2020 June, the domestic vanadium market showed a trend of rising first and then falling, and the inventory of vanadium products fluctuated in the rise and fall of market price. In the first ten days of June, the price rose, with frequent market inquiry and purchase. The traders actively started to purchase, manufacturers signed orders with low inventory. In the middle of June, due to the weak market procurement and the weak market of downstream steel mills, the demand for vanadium alloy was affected. Therefore, the manufacturers began to gradually accumulate inventory. The following is the inventory situation of major vanadium product manufacturers in June.

Item Stocks in Jun(ton) Stocks in May(ton) Change MOM
V2O5 powder 355 420 ↓ 65
V2O5 flake 60 0 ↑60
FeV 250 205 ↑45
VN alloy 420 505 ↓ 85

As can be seen from the above figure, the inventory of V2O5 powder decreased slightly compared with the previous month, but the overall inventory of 355 tons has been at a high level for the demand of the chemical industry. This high inventory situation has continued from March after the outbreak of the epidemic, and the demand for chemical industry has not been boosted. Coastal chemical processing enterprises rely on the export market, while the foreign epidemic situation has not been effectively controlled, so the demand for V2O5 powder in chemical industry is full of uncertainty.

At the end of last month, it was difficult to find V2O5 flake in the market. Most of the spot stocks  belongs to traders, so the inventory of manufacturers was low. Since this month, although the market was in a downturn in the later half of the month, the manufacturers also maintained their inquiries for the V2O5 flake due to the reduction, and the market inventory of the V2O5 flake did not increase greatly because of the weak market. Some manufacturers had a small amount of inventory at the end of the month, and the traders’ spot is active in the market.

Due to the poor demand for ferrovanadium, the inventory of ferrovanadium still increased slightly in June, when the output decreased. It can be seen that the downstream demand is weak. The market procurement of VN alloy has decreased since the middle of the month, but the manufacturers have signed many orders at beginning of this month, so most of the them still mainly hand in these orders at the end of the month. The inventory of 420 tons is not a large amount for the VN alloy market, so the manufacturers’ inventory pressure at the end of the month is not large. Therefore, they are confident about the later market.