Chinese Ferrovanadium Prices Raise
BEIJING (Asian Metal) 2 Jun 20 – Currently, mainstream prices of Chinese ferrovanadium 50%min stand at RMB105,000-107,000/t (USD29.5-30.0/kg V) delivered D/A 180 days, up by RMB4,000/t (USD1.1/kg V) from last week. As prices of raw material vanadium pentoxide flake 98%mnin keep rebounding, suppliers of ferrovanadium have to increase their prices accordingly. Though inquiries didn’t grow significantly, insiders believe that mainstream prices of ferrovanadium would keep increasing in the coming week.
A producer in South China quotes their ferrovanadium 50%min at RMB110,000/t (USD30.9/kg V) EXW D/A 180 days and could accept RMB107,000/t (USD30/kg V) for firm bids more than 30t at the moment, up by RMB4,000/t (USD1.1/kg V) from last week. “We mainly produce for our regular steel mill clients now and inquiries from other end consumers stay rare. However, as prices of raw material keep increasing, we have to increase our quotation for ferrovanadium accordingly,” said the source. Their last deal was made at RMB103,000/t (USD28.9/kg V) delivered D/A 180 days about ten days ago. He heard that major producers of vanadium pentoxide flake 98%min would increase their long-term contract prices from RMB96,000/t (USD6.24/lb V2O5) delivered D/A 180 days to RMB100,000/t (USD6.50/lb V2O5) within this week. He believes that dealing prices of ferrovanadium 50%min would touch RMB110,000/t (USD30.9/kg V) in the coming week.
With a production capacity of 2,400tpy, they produced about 1,500t in 2019 and about 450t so far this year. They expect to produce about 100t in June, unchanged from May, holding about 60t of stocks now, up by 20t from last month.
A trader in South China quotes their ferrovanadium 50%min at RMB103,000/t (USD28.9/kg V) EXW D/P and won’t accept any discount for firm bids at the moment, up by RMB3,000/t (USD0.8/kg V) from one week ago. “We sold 10t at RMB101,000/t (USD28.3/kg V) late last week. As prices of vanadium pentoxide flake keep increasing, they have to increase the quotation for ferrovanadium accordingly,” said the source. They built about 40t of stocks at RMB98,000/t (USD27.5/kg V) EXW D/P about half a months ago. They are in no hurry to sell now and waiting for prices keep increasing. He believes that mainstream prices of Chinese ferrovanadium 50%min would increase to RMB110,000/t (USD30.9/kg V) in the coming week.
With a regular trading volume of 50tpm, they sold about 600t in 2019 and sold about 200t so far this year. They expect to sell about 50t in June, unchanged about May, holding about 30t of stocks now, down by 10t from last month.
www.asianmetal.com
