Chinese Ferrovanadium Export Market Keeps Quiet
BEIJING (Asian Metal) 27 Apr 20 – Currently, mainstream export prices of Chinese ferrovanadium 80%min stand at USD27.0-28.0/kg V FOB China, up by RMB0.5/kg V from last week. Though orders from international market stay rare, export prices are increasing slightly according to the rebounding tendency in domestic market. Most insiders are watching the market and they believe that mainstream export prices of Chinese ferrovanadium would keep steady in the coming week due to the soft demand from the end consumers.
A producer in South China said, “Consumers in international market are resuming production after the peak of the COVID-19 and the demand would increase soon, so traders start to build their inventory now.” Though few end consumers would like to purchase at the moment, he thinks the price rebounding is reasonable. At the moment, they quote their ferrovanadium 80% at USD27/kg V FOB China and won’t accept any orders now, up by USD0.5/kg V from last week. They also supply raw materials vanadium pentoxide flake 98%min and they quote at USD7.5/lb V2O5 FOB China now. They would not accept any orders below their bottom price. He believes that mainstream prices for export ferrovanadium would stay firm in the coming week.
With an annual production capacity of 1,000t for ferrovanadium 80%min, they produced about 630t in 2019. They produced about 40t in March and expect the same volume in April, holding about one month’s production as the inventory now, unchanged from last month.
A trader in South China said, “We received an inquiry for 100t of ferrovanadium 80%min from Middle East last week. We tried to buy from Ukraine but few suppliers could meet our target requirements.” They contacted two producers in China and get the quotation at around USD28/kg V FOB China. As they are very demanding on the Aluminum elements, they accepted this price level and would confirm the delivery details within one week. Considering domestic prices kept rebounding during the past week, he believes that mainstream export prices of ferrovanadium 80%min would stay firm in the coming week.
With a regular trading volume of 40tpm, they didn’t close any deals during the past three months due to the COVID-19. They expect to sell 100t in April, holding no stocks now.
www.asianmetal.com
