BEIJING (Asian Metal) 23 May 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min are RMB126,000-129,000/t (USD36.5-37.4/kg V) EXW D/A 180 days, down by RMB12,000/t (USD3.5/kg V) from last week. As bidding prices for steel mills are much lower than market expectation, insiders believe mainstream prices for ferrovanadium would continue dropping in the coming week.

A producer in Northeast China quotes ferrovanadium 50%min at RMB130,000/t (USD37.7/kg V) EXW D/A 180 days and can accept RMB129,000/t (USD37.4/kg V) for firm bids, down by RMB13,000/t (USD3.8/kg V) from last week. “We only produce according to orders and I received the quotation for raw material vanadium pentoxide flake 98%min keeps at RMB120,000/t (USD8.0/lb V),” said the source. He added, “I received an inquiry for 300t ferrovanadium 80%min from one oversea client and I quote at USD37.5/kg V to them. However, the client didn’t accept as they think the quotation is still too high. That’s our bottom line at the moment.” Considering the demand keeps weak, he believes prices of this material would drop by RMB5,000/t (USD1.4/kg V) in the coming week.

With an annual production capacity of 6,000t for ferrovanadium, they produced 300t in April and expect the same volume in May, holding no stock now.

A producer in South China claimes their ferrovanadium 50%min at RMB130,000/t (USD37.7/kg V) and can accept RMB128,000/t (USD37.1/kg V) for firm bids, down by RMB12,000/t (USD3.5/kg V) from last week. “Inquiries are hard to see at the moment as prices keep dropping. We have to reduce our production, the demand seems too weak,” said the source. Their last deal was made late last week, when they sold 20t at RMB140,000/t (USD40.5/kg V) to a regular client. He added, “I received the quotation for raw material ammonium metavanadate 98%min has dropped to RMB110,000/t (USD7.4/lb V).” Considering the cost of ferrovanadium continuing dropping, he believes mainstream prices of ferrovanadium 50%min would drop to RMB120,000/t (USD34.8/kg V) in the coming week.

With an annual production capacity of 1,000t for ferrovanadium, they produced 70t in April and expect 60t in May for lack of orders, holding 10t of stock now.

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