Chinese Ammonium Metavanadate Market Stays In A Stalemate
BEIJING (Asian Metal) 22 Jan 20 – At present, mainstream prices for Chinese ammonium metavanadate 98%min stand at RMB88,000-91,000/t (USD12.8-13.2/kg) Inc-VAT EXW D/P, the same as last week. Consumers only make purchase according to urgent need and suppliers refuse to drop quotation to absorb orders. The market stays in a stalemate. Considering the market inventory stays at high level, insiders believe that prices of ammonium metavanadate would be weak after the Spring Festival.
A producer in South China quotes their ammonium metavanadate 98%min at RMB92,000/t (USD13.3/kg) Inc-VAT EXW D/P and they can accept RMB91,000/t (USD13.2/kg) for firm bids, the same as last week. “Inquiries are rare to see at the moment and we are in no hurry to sell now. Though we face high inventory pressure, we won’t consider to drop quotation to absorb new orders as our cost keeps high,” said the source. He added, “I received an inquiry for 20t this Monday but the buyer only wanted to buy at no more than RMB88,000/t (USD12.8/kg). According to what I know, the current market stock is enough to meet at least one year’s consumption in China.” Their last deal was made two weeks ago, when they sold 30t at RMB92,000/t (USD13.3/kg). Considering the supply situation keeps loose, he believes that prices of ammonium metavanadate would keep weak after the Spring Festival.
With an annual production capacity of 720t, they produced 50t in last December and expect 40t in this January, holding about 100t of stocks now.
A trader in South China noted the current price for ammonium metavanadate 98%min he received stands at RMB91,000/t (USD13.2/kg) Inc-VAT EXW D/P and they can buy at RMB90,000/t (USD13.1/kg) for firm bids, the same as last week. “Our last deal was made early last week, when we bought 30t at RMB90,000/t (USD13.2/kg). We need to guarantee at least RMB1,000/t (USD0.1/kg) then we would accept orders. However, few consumers would like to make purchase at the moment,” said the source. He added, “We would prefer to hold the inventory to watch the market and we are in no hurry to sell now.” He believes that prices of ammonium metavanadate would hold stable in the coming week.
With a regular trading volume of 60tpm, they sold 500t in 2019, down by 200t from 2018. They sold 50t in last December and didn’t sell in January, holding 60t of stocks at the moment, up by 30t from last month.
www.asianmetal.com
