Chinese Ferrovanadium Prices Go Down
BEIJING (Asian Metal) 20 Aug 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min keep at RMB139,000-142,000/t (USD39.4-40.3/kg V) EXW D/A 180 days, down by RMB3,000/t (USD0.9/kg V) from last week. Most market participants are watching the market and inquiries from end users are rare to see at the moment. Insiders believe prices of Chinese ferrovanadium would edge down in the coming week.
A producer in Liaoning quotes their ferrovanadium 50%min at RMB143,000/t (USD40.6/kg V) EXW D/A 180 days now and can accept RMB142,000/t (USD40.3/kg V) for firm bids, down by RMB3,000/t (USD0.9/kg V) from last week. “Our last deal was made early last week, when we sold 20t at RMB145,000/t (USD41.1/kg V). As mainstream prices are dropping now, none of our clients would like to buy at the moment and we are facing great pressure to close deal at more than RMB142,000/t (USD40.3/kg V) this week,” said the source. Considering few steel mills make purchase, he believes prices of ferrovanadium 50%min would drop by RMB2,000/t (USD0.6/kg V) in the coming week.
With an annual production capacity of 3,600t for ferrovanadium, they produced 260t in July and expect to produce 220t in August, holding 60t for inventory now.
A trader in Liaoning claimed the current quotation they can accept stand at RMB141,000/t (USD40.0/kg V) EXW D/P now and can accept RMB140,000/t (USD39.7/kg V) for firm bids, down by RMB2,000/t (USD0.6/kg V) from last week. “Our last deal was made last Wednesday, when we sold 10t at RMB142,000/t (USD40.3/kg V). Our regular clients are watching the market now as prices show down trend at the moment and we have to drop prices to absorb new orders,” said the source. He believes prices of ferrovanadium 50%min would drop to RMB138,000/t (USD39.2/kg V) in the coming week.
With a regular trading volume of 40tpm for ferrovanadium, they sold 400t in 2018 and have sold 250t since the beginning of 2019. They sold 40t in July and expect to sell 20t for lack of orders, holding 20t of stocks now.
www.asianmetal.com
