Chinese Ferrovanadium Prices Increase

BEIJING (Asian Metal) 4 Jun 20 – Currently, mainstream prices of Chinese ferrovanadium 50%min stand at RMB109,000-111,000/t (USD30.7-31.2/kg V) delivered D/A 180 days, up by RMB4,000/t (USD1.1/kg V) from this Monday. Few producers could replenish raw materials stocks in spot market due to the tight supply situation. Considering inquiries for ferrovanadium keeps active, insiders believe that mainstream prices of ferrovanadium 50%min would keep increasing in the coming week.

A producer in Northeast China quotes their ferrovanadium 50%min at RMB110,000/t (USD31/kg V) delivered D/P and could accept this price level for D/A 180 days for firm bids. “We buy raw material vanadium pentoxide flake from major producers by long-term contract but our regular suppliers have no goods to supply at the moment,” said the source. They would not accept any orders below their current quotation at the moment. He heard a trader closed deal for 32t of vanadium pentoxide flake 98%min at RMB110,000/t (USD7.18/lb V2O5) EXW D/P this Wednesday. Considering the cost of ferrovanadium keep increasing, he believes that mainstream prices of ferrovanadium 50%min would increase accordingly.

With an annual production capacity of 2,400t, they produced about 990t in 2019 and about 270t so far this year due to the COVID-19. They produced about 80t in May and expect about 120t in June, holding about 40t of stocks now, unchanged from last month.

“Our last deal for ferrovanadium 50%min was made about two weeks ago, when we bought 10t at RMB102,000/t (USD28.7/kg V) EXW D/P,” a source from North China said. The current market prices for ferrovanadium 50%min he received stand at around RMB111,000/t (USD31.2/kg V) delivered D/A 180 days. As prices stayed increasing during the past two weeks, they prepare to build more stocks within this week. Considering most suppliers keep increasing their prices every day, he believes that mainstream prices would increase to RMB111,000/t (USD31.2/kg V) EXW D/P in the coming week.

With an annual consumption capacity of 240t, they consumed about 200t in 2019 and about 110t in the first five months this year. They expect to consume about 20t in June, unchanged from May, holding about 10t of stocks now, down by 10t from last month.