Chinese Ferrovanadium Market Keeps Quiet
BEIJING (Asian Metal) 17 Dec 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB99,000-102,000/t (USD28.3-29.1/kg V) EXW D/A 180 days, the same as last week. Most suppliers are facing high pressure to reduce their stocks as the supply situation keeps loose. However, considering the cost stays at high level, insiders believe that prices of ferrovanadium would stand firm in the coming week.
A producer in North China quotes their ferrovanadium 50%min at RMB103,000/t (USD29.4/kg V) EXW D/A 180 days and can accept RMB102,000/t (USD29.1/kg V) for firm bids, unchanged from last week. “I received an inquiry for 20t this Monday but the buyer only wanted to buy at no more than RMB100,000/t (USD28.6/kg V),” said the source. In order to reduce their stocks, they finally accept this order. He added, “The current price for raw material vanadium pentoxide flake 98%min I received stands at RMB95,000/t (USD6.3/lb V2O5) EXW D/P, down by RMB1,000/t (USD0.1/lb V2O5) from last week.” Though the cost reduced slightly, the profit margin still keeps thin. He believes that prices of ferrovanadium would stay firm in the coming week.
With an annual production capacity of 3,600t, they produced 2,000t in 2018 and have produced 1,800t so far this year. They expect to produce 60t in December, down by 40t from November for lack of orders, holding 20t of stocks now, the same as last month.
A producer in Northeast China noted their ferrovanadium 50% at RMB102,000/t (USD29.1/kg V) EXW D/P and can accept RMB100,000/t (USD28.6/kg V) for firm bids, unchanged from last week. “Our last deal was made last Wednesday, when we sold 10t to one of our regular clients at this price level,” said the source. He added, “Inquiries from new clients are hard to see at the moment but we won’t drop our quotation anymore as we cann’t guarantee our basic profit margin then.” 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 120t in November and expect 90t in December as the demand keeps soft, holding 30t of stocks now.
www.asianmetal.com
