Chinese Ferrovanadium Market Keeps Quiet
BEIJING (Asian Metal) 29 Nov 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB101,000-104,000/t (USD28.7-29.6/kg V) EXW D/A 180 days, down by RMB3,000/t (USD0.9/kg V) from this Tuesday. Consumers only make purchase according to urgent need and the market stays quiet. Most insiders are watching the market now and they believe prices of ferrovanadium would stay weak in the coming week.
A producer in South China quotes their ferrovanadium 50%min at RMB105,000/t (USD29.9/kg V) EXW D/A 180 days and can accept RMB104,000/t (USD29.6/kg V) for firm bids, down by RMB2,000/t (USD0.6/kg V) from this Monday. “We bought raw material vanadium pentoxide flake 98%min at RMB96,000/t (USD6.3/lb V2O5) EXW D/P and the current price for ferrovanadium 50%min almost equals to our cost line,” said the source. Their last deal was made this Wednesday, when they sold 10t to one of their regular clients at the current quotation. Considering inquiries are rare to see at the moment, he believes prices of ferrovanadium 50%min would drop to RMB100,000/t (USD28.4/kg V) in the coming week.
With an annual production capacity of 1,000t, they produced 50t in October and expect 30t in November for lack of orders, holding 20t of stocks now.
A trader in South China noted the current price for ferrovanadium 50%min he received stands at RMB102,000/t (USD29.0/kg V) EXW D/P and can buy at RMB100,000/t (USD28.4/kg V) for firm bids, down by RMB3,000/t (USD0.9/kg V) from this Monday. “Our steel mill clients mainly buy vanadium nitride as raw material now and our major client reduced their consumption for ferrovanadium from 40tpm to 20tpm this month,” said the source. Their last deal was made early last week, when they sold 20t at RMB106,000/t (USD30.1/kg V). Considering the market demand keeps soft, he believes prices of ferrovanadium 50%min would drop by RMB1,000/t (USD0.3/kg V) again in the coming week.
With a regular trading volume of 50tpm, they sold 600t in 2018 and have sold 450t so far this year. They expect to sell 30t in November, down by 20t from October, holding 15t of stocks now, up by 10t from late last month.
www.asianmetal.com
