Chinese Ferrovanadium Prices Edge Down

BEIJING (Asian Metal) 18 Jun 20 – Currently, mainstream prices of Chinese ferrovanadium 50%min stand at RMB107,000-109,000/t (USD30.2-30.8/kg V) EXW D/P, down by RMB1,000/t (USD0.3/kg V) from this Monday. As traders are in hurry to reduce their stocks, dealing prices keep dropping. However, as the cost keeps firm, few producers would like to drop their quotation to accept orders. Considering most steel mills would start to purchase in the coming week, insiders believe that mainstream prices of ferrovanadium 50%min would keep firm in the coming week.

“I received the current price for vanadium pentoxide flake 98%min at RMB106,000/t (USD6.9/lb V2O5) EXW D/P, which means the cost of ferrovanadium at least needs RMB111,000/t (USD31.3/kg V) EXW D/P,” a consumer in South China said. At the moment, producers quote RMB110,000/t (USD31/kg V) and traders quote RMB107,000/t (USD30.2/kg V) for ferrovanadium 50%min to them. Though prices of trading companies stay at a low level, in order to guarantee the quality, they prefer to buy from producers. They would buy 30t at the end of this month and their target price keep at RMB110,000/t (USD31/kg V) delivered D/P.

With an annual consumption capacity of 400t for ferrovanadium, they consumed about 360t in 2019 and about 150t so far this year. They expect to consume about 30t in June, unchanged from May, holding about one month’s demand as regular stocks.

“Prices are dropping now as traders are in hurry to sell out their stocks. I think that it’s just a temporary dip as the cost keeps firm,” a consumer in North China said. Their last deal was made about three weeks ago, when they bought 20t at RMB99,500/t (USD28.1/kg V) delivered D/P. He received the current prices of vanadium pentoxide flake 98%min stand at around RMB107,000/t (USD7/lb V2O5) EXW D/A 180 days and about RMB110,000/t (USD31/kg V) delivered D/P for ferrovanadium 50%min, including about RMB1,000/t (USD0.3/kg V) as freight. They could accept this price level for ferrovanadium and plan to buy another 20t at the end of June. Supported by the high cost, he believes that mainstream prices of ferrovanadium 50%min would stay firm in the coming week.

With a consumption capacity of 300tpy, they consumed about 240t in 2019 and about 100t in the first five months this year. They expect to consume 20t in June, unchanged from May. They have about 20t of stocks in hands now, the same as last month.