Chinese Ferrovanadium Market Supply Sufficient
BEIJING (Asian Metal) 17 Jul 20 – At present, mainstream prices of Chinese ferrovanadium 50%min stand at RMB105,000-107,000/t (USD30-30.6/kg V) delivered D/A 180 days, edge up by RMB500/t (USD0.1/kg V) from this Monday. The market supply sufficient but few suppliers would drop their prices to promote sales due to the high cost of raw materials. Considering rare inquiries and high cost raw materials, insiders believe that mainstream prices of ferrovanadium 50%min would stay in a stalemate in the coming week.
“Prices of raw material vanadium pentoxide flake 98%min stood firm at RMB105,000/t (USD7/lb V2O5) EXW D/P during the past week and we could hardly drop our quotation for ferrovanadium 50%min to promote sales,” a producer in Northwest China said. They sold 20t to one of their regular clients at RMB105,000/t (USD30/kg V) EXW D/P, which could hardly guarantee their production cost. In order to sell above their cost line, they try to quote their quotation at RMB105,500/t (USD30.2/kg V) from this Wednesday and have not closed deals yet. They prefer to watch the market than accept new orders now. Though inquiries stay rare, supported by the high cost, he believes that mainstream prices of ferrovanadium 50%min would keep firm in the coming week.
With an annual production capacity of 6,000t, they produced about 3,000t in 2019 and about 830t in the first half of this year. They expect to produce about 120t in July, down by 30t from June, holding about 30t in hands now, down by 20t from last month.
“Some traders sell import ferrovanadium 50%min at only RMB101,000/t (USD28.9/kg V) EXW D/P. The growing quantity of import ferrovanadium would make high sales pressure to us,” a producer in South China said. He heard that a Tianjin trader just imported 80t of ferrovanadium 50%min and would arrived at Tianjin port at the end of this month. They sold 20t at RMB104,500/t (USD29.9/kg V) EXW D/P to one of their regular clients this Tuesday. They quote RMB106,000/t (USD30.3/kg V) at the moment. Supported by the high cost of raw materials, he believes that mainstream prices of ferrovanadium 50%min would keep steady in the coming week.
With a production capacity of 5,400t, they produced about 1,650t in 2019 and about 550t in the first 6 months this year. They produced about 100t in June and expect 80t in July, holding about 50t of regular stocks now, unchanged from last month.
www.asianmetal.com
