BEIJING (Asian Metal) 6 Jun 19 – Mainstream transaction prices for Chinese ferrovanadium 50%min stand at RMB122,000-125,000/t (USD35.30-36.20/kg V) EXW D/A 180 days currently, up by RMB2,000/t (USD.60/kg V) from last week. Due to the integration of two large companies, Pangang Vanadium & Titanium and Sichuan Desheng, more raw materials are concentrated and market participants generally expect that prices for ferrovanadium would go up in the near future. Owing to obviously increasing enquiries in the market, it’s expected that prices for Chinese ferrovanadium would increase further in the coming week.

A producer in South China noted that the lowest price for ferrovanadium 50%min they can accept now is RMB125,000/t (USD36.20/kg V) EXW D/A 180 days, an increase of RMB3,000/t (USD0.90/kg V) from last week. “We purchased 60t of raw material vanadium pentoxide flake 98%min at RMB116,000/t (USD7.80/lb V) EXW D/P last week and large suppliers of the material keep their prices firm now. We think that ferrovanadium prices would tend to increase in the coming week rather than decline supported by high raw material prices,” the producer said, adding that they last sold 30t of ferrovanadium 50%min at RMB122,000/t (USD35.30/kg V) early last week. The producer forecasts that mainstream prices for ferrovanadium 50%min would go up to RMB130,000/t (USD37.60/kg V) in the Chinese market in the coming week.

With an annual production capacity of 3,600t of ferrovanadium, the producer produced 200t of the material in May and expects that the output in June would level off, holding 30t of stocks at the moment.

Another producer disclosed that now they mainly make deliveries for ferrovanadium orders signed before and are reluctant to sign new orders, adding that the lowest price they can accept for the material is RMB125,000/t (USD36.20/kg V) at present, up by RMB2,000/t (USD0.60/kg V) from last week. “We think that there is no room for ferrovanadium prices to decrease further now and we will have to close our production lines in the future if prices continue to go down. We slightly raise our prices at present in order to get basic profits, refusing to sign any order at less than RMB125,000/t (USD36.20/kg V). We have arranged production for orders we have signed to June 20th and can sign orders for late June in advance now,” the producer said, adding that they last sold 20t of ferrovanadium 50%min at RMB123,000/t (USD35.60/kg V) early last week. Considering that prices for raw material still show signs of increase, the producer forecasts that prices for Chinese ferrovanadium 50%min would rise further to over RMB130,000/t (USD37.60/kg V) in the coming week.

With an annual production capacity of 1,000t of ferrovanadium, the producer produced 50t of the material in May and expects to raise the output to 70t in June. They merely decide their output based on sales now and accordingly hold no stocks.

www.asianmetal.com