Chinese Ferrovanadium Market Demand Stays Soft
BEIJING (Asian Metal) 3 Mar 20 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB97,000-100,000/t (USD27.9-28.7/kg V) EXW D/P, down by RMB2,000/t (USD0.6/kg V) from last week. Few steel mills are making purchase now and the market demand stays soft. Suppliers drop their quotation actively to promote sales. However, considering prices of raw materials stay firm, insiders believe that mainstream prices would keep steady in the coming week.
A consumer in Northeast China noted the current price for ferrovanadium 50%min he received stands at RMB100,000/t (USD28.7/kg V) EXW D/A 180 days, down by RMB2,000/t (USD0.6/kg V) from last week. “We are consuming our stocks now and we are in no hurry to replenish raw materials,” said the source. He added, “Our target price for ferrovanadium 50%min stays at RMB97,000/t (USD27.9/kg V) EXW D/P.” Their last deal was made at the end of January, when they bought 30t at RMB97,000/t (USD27.9/kg V) Delivered D/P. He believes that prices of ferrovanadium 50%min would stay firm at this price level again in the coming week.
With an annual consumption capacity of 200tpy, they consumed 180t in 2019 and have consumed 20t so far this year. They expect to consume 15t in March, unchanged from February, holding 10t of stocks now, down by 20t from one month aga.
A producer in Northeast China quotes their ferrovanadium 50%min at RMB98,000/t (USD28.2/kg V) EXW D/P and they can accept RMB97,000/t (USD27.9/kg V) for firm bids, down by RMB3,000/t (USD0.9/kg V) from last week. “We are in hurry to reduce our stocks as few buyers sent inquiries to us during the past two weeks,” said the source. Their last deal was made late January, when they sold 40t to one of their steel mill clients at RMB100,000/t (USD28.7/kg V) Delivered D/A 180 days. He added, “The current price for raw material vanadium pentoxide flake 98%min I received stays firm at RMB94,500/t (USD6.3/lb V2O5) EXW D/P, unchanged from last week.” Considering the cost keeps high, he believes that prices of ferrovanadium 50%min would keep steady in the coming week.
With an annual production capacity of 2,400t, they produced 1,500t in 2019 and only produced 80t so far this year. They have been out of production for one and a half months now, holding 40t of stocks at the moment, unchanged from last month.
www.asianmetal.com
