Chinese Ferrovanadium Prices Move Down
BEIJING (Asian Metal) 5 Jun 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min hold at RMB119,000-122,000/t (USD34.4-35.3/kg V) EXW D/A 180 days, down by RMB1,000/t (USD0.3/kg V) from last week. Producers hold back from selling in order to keep their prices firm, but purchasing prices offered by steel mills still drop slightly. As raw material prices stabilize, insiders believe that prices for Chinese ferrovanadium would be relatively stable in the coming week.
A producer in Northeast China quotes ferrovanadium 50%min at RMB123,000/t (USD35.6/kg V) EXW D/A 180 days now, and can give clients who have real intention to buy the lowest price of RMB122,000/t (USD35.3/kg V), which is down by RMB2,000/t (USD0.6/kg V) from last week. “It makes no sense now to stick to high quotations as downstream consumers are inactive in making purchases. Instead, we cut our selling price. But at present clients who have real intention to buy accept RMB117,000/t (USD33.9/kg V) as the highest, which is what we can’t afford at all,” the source said. “Our raw material supplier quotes vanadium pentoxide flake 98%min at RMB120,000/t (USD8.0/lb V), which means that there are nearly no profits at all for us in producing ferrovanadium. So we won’t make sales at prices below our current quotation,” the source added. They last sold 30t of ferrovanadium 50%min at RMB135,000/t (USD39.1/kg V) two weeks ago. He believes that prices for Chinese ferrovanadium would remain stable in the coming week.
With an annual production capacity of 6,000t of ferrovanadium, the source expects to produce 50t in June, unchanged from May, and holds no stocks now.
A trader in South China reveals that their lowest selling price for ferrovanadium 50%min is RMB120,000/t (USD34.7/kg V) EXW D/A 180 days now, unchanged from last week. “Thanks to long-term cooperation with our suppliers, we can purchase spot materials from them at RMB119,000/t (USD34.4/kg V) as the lowest, which means that we earn only RMB1,000 (RMB145) per ton,” the source said. “Now demand in the spot market is weak. In order to avoid potential risks, we won’t make purchases unless we have received orders from our clients,” the source added. They last sold 10t of ferrovanadium 50%min at RMB120,000/t (USD34.7/kg V) to a regular client late last week. He believes that prices for Chinese ferrovanadium would remain stable in the coming week.
Typically trading 30tpm of ferrovanadium, the source sold 30t in May and expects to keep a similar sales volume in June, holding no stocks now.
www.asianmetal.com
