Chinese Ferrovanadium Prices Move Down
BEIJING (Asian Metal) 23 Jun 20 – Currently, mainstream prices of Chinese ferrovanadium 50%min stand at RMB106,000-108,000/t (USD30.0-30.5/kg V) delivered D/A 180 days, down by RMB1,000/t (USD0.3/kg V) from late last week. Though the cost keeps firm, traders are in hurry to reduce their stocks, which makes dealing prices move down slightly. Considering steel mills would start their bidding for July demand soon, insiders believe that mainstream prices of ferrovanadium would stay firm in the coming week.
“We prepare to buy 10t of ferrovanadium 50%min in the coming week and the current prices I received from traders stand at RMB104,000/t (USD29.4/kg V) EXW D/P now, which is lower than the quotation of producers for about RMB2,000/t (USD0.6/kg V),” a consumer in South China said. As they worries about the quality of traders, they would rather buy from their regular producers at RMB108,000/t (USD30.5/kg V) delivered D/A 180 days. Their last deal was made early June, when they bought 10t at RMB102,800/t (USD29.1/kg V) delivered D/A 180 days. As prices of vanadium pentoxide flake 98%min keep steady during the past week, he believes that mainstream prices of vanadium nitride would stay firm in the coming week.
With an annual consumption capacity of 180t, they consumed about 120t in 2019 and about 50t in the first five months this year. They expect to consume about 10t in June, the same as May, holding about 5t of stocks now, down by 5t from last month.
“Now ferrovanadium 50%min has high and low prices together in the market. Traders drop their quotation to reduce stocks but producers insist on their prices due to the high cost,” a consumer in North China noted. He received the current prices for ferrovanadium 50% at RMB104,000/t (USD29.4/kg V) delivered D/P from traders and RMB110,000/t (USD31.1/kg V) delivered D/A 180 days from producers. In order to guarantee the quality, they prefer to accept producer’s quotation and the producer would accept RMB108,000/t (USD30.5/kg V) delivered D/A 180 days for firm bids more than 10t. They would delay to buy at the end of this month. Their last deal was made about 15 days ago, when they bought 10t at RMB105,000/t (USD29.7/kg V) delivered D/A 180 days. Considering prices of vanadium pentoxide flake stand firm during the past two weeks, he believes that mainstream prices of ferrovanadium 50%min would keep steady in the coming week.
With a consumption capacity of 240tpy, they consumed about 200t in 2019 and only 50t so far this year due to the COVID-19. They consumed about 10t in May and expect the same volume in June. They have less than 5t of stocks now, almost the same as last month.
www.asianmetal.com
