BEIJING (Asian Metal) 24 Mar 20 – Baosteel Group Xinjiang Bayi Iron & Steel Co., Ltd. prepares to buy 60t of vanadium nitride at the end of March and their target price stays at RMB145,000/t (USD26.6/kg V) delivered D/A 180 days.

“I learnt prices of vanadium pentoxide flake 98%min stay at RMB93,000/t (USD6.1/lb V2O5) EXW D/P at the moment and the cost of vanadium nitride keeps at RMB145,000/t (USD26.6/kg V) EXW D/P. However, as the market of downstream rebar keeps soft, we could only accept RMB145,000/t (USD26.6/kg V) delivered D/A 180 days for vanadium nitride,” said the source. He added, though prices of rebar increased by about RMB100/t (USD14.1/t) during the past week, the demand still kept soft. Steel mills face high sales pressure and at the same time, producers of vanadium pentoxide and vanadium nitride didn’t stop their production. Considering market inventory of vanadium nitride stays at high level, he believes that mainstream prices of Chinese vanadium nitride would stay weak in the coming week.

Located in Urumqi, they are the major consumer for vanadium nitride and ferrovanadium in Xinjiang. With an annual consumption capacity of 600t for vanadium nitride, they consumed 500t in 2019. They expect to consume 40t in March, unchanged from February, holding 20t of stocks now.

This Monday, mainstream prices of Chinese vanadium nitride stand at RMB142,000-145,000/t (USD26.0-26.6/kg V) delivered D/A 180 days, unchanged from last week.