Chinese Ferrovanadium Prices Keep In A Stalemate
BEIJING (Asian Metal) 30 Mar 20 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB95,000-98,000/t (USD26.8-27.6/kg V) delivered D/A 180 days, unchanged from last week. As downstream steel market stays soft, few steel mills would like to buy ferrovanadium at high price level. However, as the cost keeps high, producers refuse to accept orders at low price level. Insiders believe that mainstream prices of Chinese ferrovanadium would stay in a stalemate in the coming week.
A trader in South China notes the current price for ferrovanadium 50%min he received stands at RMB98,000/t (USD27.6/kg V) delivered D/A 180 days and they can buy at RMB97,500/t (USD27.5/kg V) for firm bids, unchanged from last week. “In order to guarantee our basic profit margin, we could at most accept RMB95,000/t (USD26.8/kg V). Our regular supplier has agreed with us that we could close deal for firm bids more than 30t,” said the source. They prepare to make purchase for their steel mill client within the coming week. Considering the cost keeps firm, he believes that mainstream prices of ferrovanadium 50%min would be steady in the coming week.
With a regular trading volume of 30tpm, they sold 350t in 2019 and didn’t close deal during the past two months. They sold 32t in January and expect the same volume in April, holding no stocks now.
A consumer in North China claims the current price for ferrovanadium 50%min he received stands at RMB99,000/t (USD27.9/kg V) delivered D/A 180 days and they could buy at RMB98,000/t (USD27.6/kg V) for firm bids, the same as last week. “We just bought 5t in spot market at RMB98,000/t (USD27.6/kg V) last Friday. As prices keep dropping, we would make purchase twice per month,” said the source. He learnt prices of vanadium pentoxide flake 98%min stand at RMB92,500/t (USD6.1/lb V2O5) EXW D/P. He believes that mainstream prices for ferrovanadium 50%min would drop to RMB95,000/t (USD26.8/kg V) in the coming week though few suppliers would like to sell.
With an annual consumption capacity of 180t, they comsumed 120t in 2019 and have consumed 30t so far this year. They expect to consume 10t in March, unchanged from Februay, holding 5t of stocks now, down by 5t from last month.
www.asianmetal.com
