BEIJING (Asian Metal) 29 Jun 20 – Currently, mainstream prices of Chinese ferrovanadium 50%min stand at RMB105,000-107,000/t (USD29.7-30.2/kg V) delivered D/A 180 days, down by RMB1,000/t (USD0.3/kg V) from last Monday. As traders are in hurry to reduce their stocks, dealing prices keep moving down. However, few producers would drop their quotation to accept orders due to the high cost of raw materials. With the constant depletion of cheap market inventory, insiders believe that mainstream prices of ferrovanadium 50%min would touch the bottom and rebound again in the coming week.

“According to what I know, producers would quote at least RMB110,000/t (USD31.1/kg V) EXW D/P at the moment. However, in order to reduce our stocks, we could accept RMB105,000/t (USD29.7/kg V),” a trader in North China said. He received the current prices of vanadium pentoxide flake 98%min at RMB107,000/t (USD7/lb V2O5) EXW D/A 180 days, unchanged from last week. Their last deal was made last Wednesday, when they sold 10t at RMB105,000/t (USD29.7/kg V). With the consumption of cheap stocks, he believes that mainstream prices of ferrovanadium 50%min would rebound to RMB110,000/t (USD31.1/kg V) due to the high cost of raw materials in the coming week.

With a regular trading volume of 40tpm, they sold about 360t in 2019 and about 130t so far this year. They sold 30t in May and expect the same volume in June, holding about 30t of stocks now, up by 20t from last month.

“We dropped our bottom price from RMB107,000/t (USD30.2/kg V) EXW D/P to RMB105,000/t (USD29.7/kg V) then closed deal for 8t about one week ago,” another trader in North China noted. The current prices of vanadium pentoxide flake 98%min he received stand at around RMB106,000/t (USD6.9/lb V2O5) EXW D/P now, the same as last week. As major producers ask for at least RMB110,000/t (USD31.1/kg V) EXW D/P due to the high cost, one of their regular clients wants to buy all his 10t stocks at no more than 105,000/t (USD14.8/kg V) today. He refused this order at last as he believes that mainstream prices of ferrovanadium 50%min would touch the bottom and start to rebound again in the coming week.

With a regular trading volume of 20tpm, they sold about 240t in 2019 and about 120t so far this year. They expect to sell 20t in June, unchanged from May. They have 10t in hands now, unchanged from last month.

www.asianmetal.com