Chinese Ferrovanadium Prices Drop

BEIJING (Asian Metal) 28 Oct 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB125,000-128,0000/t (USD35.4-36.2/kg V) EXW D/A 180 days, down by RMB2,000/t (USD0.6/kg V) from last week. Suppliers are in hurry to reduce their stocks but consumers prefer to watch the market. Insiders believe prices of ferrovanadium would drop slightly in the coming week.

A consumer in South China claimed the current price for ferrovanadium 50%min he received dropped to RMB126,000/t (USD35.7/kg V) EXW D/A 180 days now, down by RMB2,000/t (USD0.6/kg V) from one week ago. “We just bought 20t for urgent need last Friday at RMB126,000/t (USD35.7/kg V) delivered D/A 180 days. We used to buy 40t in one time. However, considering prices keep dropping, we won’t build too much stock as usual,” said the source. He believes prices of ferrovanadium 50%min would drop by RMB2,000/t (USD0.6/kg V) in the coming week.

With an annual consumption capacity of 600t, they consumed 500t in 2018 and have consumed 400t this year. They expect to consume 40t in October, unchanged from September, holding 20t of stocks now, down by 20t from last month.

A trader in South China quotes their ferrovanadium 50%min at RMB126,000/t (USD35.7/kg V) EXW D/A 180 days now and can accept RMB125,000/t (USD35.4/kg V) for firm bids, down by RMB3,000/t (USD0.8/kg V) from one week ago. “Our clients are watching the market now and few of them would like to make purchase. I believe prices of ferrovanadium 50%min would drop by RMB1,000/t (USD0.3/kg V) again in the coming week,” said the source. Their last deal was made two weeks ago, when they sold 20t at RMB129,000/t (USD36.5/kg V).

With a regular trading volume of 80tpm, they sold 900t in 2018 and have sold only 500t so far this year. They expect to sell 50t in October, down by 20t from September, holding 30t of stocks now, up by 20t from late last month.