Chinese Ammonium Metavanadate Prices Keep Dropping

BEIJING (Asian Metal) 6 Nov 19 – Currently, mainstream prices for Chinese ammonium metavanadate 98%min stand at RMB90,000-93,000/t (USD12.9-13.3/kg) Inc-VAT EXW D/P, down by RMB8,000/t (USD1.1/kg) from last week. As the supply situation keeps loose, most suppliers are facing high pressure to reduce their stocks. Insiders believe prices of ammonium metavanadate would drop slightly in the coming week.

A producer in North China quotes their ammonium metavanadate 98%min at RMB95,000/t (USD13.6/kg) Inc-VAT EXW D/P and can accept RMB93,000/t (USD13.3/kg) for firm bids, down by RMB6,000/t (USD0.9/kg) from last week. “I received an inquiry for 20t this Tuesday but the buyer only wanted to buy at no more than RMB90,000/t (USD12.9/kg),” said the source. He added, “I didn’t accept this order but I believe prices would drop to this price level in the coming week.” Their last deal was made early last week, when they sold 15t at RMB99,000/t (USD14.1/kg). As inquiries are hard to see and prices keep dropping, they prepare to stop production from the end of this month.

With an annual production capacity of 960t, they produced 60t in October and would not produce in November for overhaul, holding 30t of stocks now.

A consumer in Northwest China noted the lowest price for ammonium metavanadate 98%min he received stands at RMB91,000/t (USD13.0/kg) Inc-VAT EXW D/P now, down by RMB8,000/t (USD1.1/kg) from last week. “We quote our ferrovanadium 50%min at RMB102,000/t (USD29.2/kg V) now but can only close deal at no more than RMB98,000/t (USD28.0/kg V). According to our downstream contracts, we can at most accept RMB91,000/t (USD13.0/kg) for raw material ammonium metavanadate 98%min,” said the source. Their last deal was made this Monday, when they bought 30t at RMB91,000/t (USD13.0/kg). Considering prices of ferrovanadium drop again and again, he believes prices of ammonium metavanadate 98%min would go below RMB90,000/t (USD12.9/kg) in the coming week.

With an annual consumption capacity of 600t, they consumed 580t in 2018 and have consumed 500t this year. They expect to consume 40t in November, down by 10t from October, holding 30t of stocks now, the same with last month.