Chinese Ferrovanadium Prices Drop
BEIJING (Asian Metal) 7 May 19 – This Monday, mainstream prices for Chinese ferrovanadium 50%min are RMB170,000-173,000/t (USD50.3-51.1/kg V) EXW D/A 180 days, down by RMB2,000/t (USD0.6/kg V) from last week. As bidding prices for steel mills are lower than market expectation, insiders believe mainstream prices for this material would keep dropping in the coming week.
A producer in Northeast China quotes ferrovanadium 50%min at RMB173,000/t (USD51.1/kg V) EXW D/A 180 days and RMB170,000/t (USD50.3/kg V) EXW D/P, down by RMB2,000/t (USD0.6/kg V) from last week. “We are producing for long term contract now. We didn’t close any deals in spot market during the past week as inquiries are hard to see,” said the source. He added, “One client wants to buy 5t of this material but only can accept at no more than RMB165,000/t (USD48.8/kg V) EXW D/P.” Their last deal was made two weeks ago, when they sold 20t at RMB175,000/t (USD51.7/kg V) EXW D/P. Considering the demand keeps weak, he believes prices of ferrovanadium would drop to RMB168,000/t (USD49.7/kg V) EXW D/P in the coming week.
With an annual production capacity of 3,600t for ferrovanadium, they produced 200t in April and expect the same volume in May, holding 20t of stock now.
Another producer in Northeast China quotes ferrovanadium 50%min at RMB170,000/t (USD50.3/kg V) EXW D/P and won’t accept any discount now, down by RMB2,000/t (USD0.6/kg V) from last week. “I heard bidding prices for some steel mills are only RMB168,000 (USD49.7/kg V) delivered D/A 180 days and even RMB165,000/t (USD48.8/kg V) delivered 180 days, which would make great pressure to mainstream prices,” said the source. Their last deal was made early last week, when they sold 10t at RMB178,000/t (USD52.6/kg V) delivered D/P. He believes prices of this material would drop by RMB5,000/t (USD1.5/kg V) in the coming week.
With an annual production capacity of 2,400t for ferrovanadium, they produced 120t in April and expect the same volume in May, holding 30t of stock now.
www.asianmetal.com
