BEIJING (Asian Metal) 5 Nov 19 – As prices of vanadium market keep dropping, consumers only make purchase according to urgent need and few traders would like to build inventory now, which leads producers can hardly sell their ferrovanadium at high price level. Currently, mainstream prices for Chinese ferrovanadium 50%min drop to RMB104,000-107,000/t (USD29.6-30.4/kg V) EXW D/A 180 days, down by RMB15,000/t (USD4.3/kg V) from last week. Considering the supply in spot market stays loose, insiders believe prices of ferrovanadium would keep dropping in the coming week.

A producer in South China reported their bottom price for ferrovanadium 50%min at RMB105,000/t (USD29.9/kg V) EXW D/A 180 days, down by RMB15,000/t (USD4.3/kg V) from last week. “It’s hard to close deal at more than RMB105,000/t (USD29.9/kg V) at the moment. In order to reduce our sales pressure, we have to drop our quotation according to the market dropping trend,” said the source. He added, “I received the current price for vanadium pentoxide flake 98%min at RMB95,000/t (USD6.3/lb V2O5) EXW D/P now, down by RMB10,000/t (USD0.7/lb V2O5) from last week.” Their last deal was made this Monday, when they sold 20t at RMB105,000/t (USD29.9/kg V) Delivered D/A 180 days to their regular steel mill client. He believes prices of ferrovanadium 50%min would drop to RMB100,000/t (USD28.5/kg V) in the coming week.

With an annual production capacity of 2,400t, they produced 160t in October and expect 120t in November for weak demand, holding 40t of stocks now.

Another producer in South China mentioned their ferrovanadium 50%min at RMB108,000/t (USD30.7/kg V) EXW D/A 180 days and can accept RMB105,000/t (USD29.9/kg V) for firm bids, down by RMB15,000/t (USD4.3/kg V) from last week. “Inquiries are hard to see at the moment. Even we dropped the quotation a lot, it’s still hard to release our inventory pressure,” said the source. Their last deal was made two weeks ago, when they sold 30t to one of their regular steel mill clients at RMB127,000/t (USD36.1/kg V) Delivered D/A 180 days. He believes prices of ferrovanadium 50%min would drop by RMB5,000/t (USD1.4/kg V) in the coming week.

With an annual production capacity of 1,800t, they produced 120t in October and expect 80t in November, holding 40t of stocks now.

www.asianmetal.com