Chinese Ferrovanadium Prices Slide
BEIJING (Asian Metal) 23 Aug 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min stand at RMB135,000-138,000/t (USD38.1-39.0/kg V) EXW D/A 180 days, down by RMB4,000/t (USD1.1/kg V) from early this week. Some suppliers are in hurry to reduce their stocks and the supply keeps loose. Insiders believe prices of ferrovanadium would edge down in the coming week.
A producer in Hubei mentioned the current quotation for their ferrovanadium 50%min keeps at RMB138,000/t (USD39.0/kg V) EXW D/A 180 days and can accept RMB137,000/t (USD38.7/kg V) for firm bids now, down by RMB3,000/t (USD0.8/kg V) from early this week. “Our last deal was made early this week, when we sold 10t at RMB140,000/t (USD39.5/kg V). However, few clients would like to buy at more than RMB138,000/t (USD39.0/kg V) now. In order to reduce the stock, we have to drop our quotation to absorb new orders,” said the source. He believes prices of ferrovanadium 50%min would drop to RMB135,000/t (USD38.1/kg V) in the coming week.
With an annual production capacity of 1,200t for ferrovanadium, they produced 80t in July and expect to produce 60t in August for lack of orders, holding 30t of stocks now.
A trader in Sichuan indicated their quotation for ferrovanadium 50%min keeps at RMB140,000/t (USD39.5/kg V) EXW D/A 180 days and can accept RMB138,000/t (USD39.0/kg V) for firm bids, down by RMB4,000/t (USD1.1/kg V) from early this week. “I received an inquiry for 30t of ferrovanadium 50%min this Thursday. However, the buyer only wants to buy at no more than RMB135,000/t (USD38.1/kg V), which is even lower than our cost for RMB1,000/t (USD0.3/kg V), so we refused him directly,” said th source. Their last deal was made late last month, when they bought 60t at RMB136,000/t (USD38.4/kg V). Considering inquiries from end users are rare to see, he believes prices of ferrovanadium 50%min would drop to RMB136,000/t (USD38.4/kg V) in the coming week.
With a regular trading volume of 60tpm for ferrovanadium, they sold 600t in 2018 and have sold 300t since the beginning of 2019. They sold 60t in July but didn’t close any deals this month, holding 60t in hand at the moment.
www.asianmetal.com
