Chinese Ferrovanadium Prices Slump
BEIJING (Asian Metal) 29 Oct 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min slumped to RMB119,000-122,000/t (USD33.7-34.5/kg V) EXW D/A 180 days, down by RMB6,000/t (USD1.7/kg V) from late last week. Major steel mills refuse to buy at high price level and most suppliers are actively cutting prices to win orders. Insiders believe prices of ferrovanadium would continue the falling trend.
A producer in Northeast China quotes their ferrovanadium 50%min at RMB120,000/t (USD34.0/kg V) EXW D/A 180 days and can accept RMB119,000/t (USD33.7/kg V) for firm bids, down by RMB6,000/t (USD1.7/kg V) from last week. “We participated in a steel mill bidding for 50t in the past week and the buyer only wanted to buy at no more than RMB115,000/t (USD32.6/kg V) Delivered D/A 180 days,” said the source. Their last deal was made two weeks ago, when they sold 20t at RMB130,000/t (USD36.8/kg V). He added, “The current prices for raw material vanadium pentoxide flake 98%min I received have dropped to about RMB108,000/t (USD7.1/lb V) EXW D/A 180 days, down by RMB10,000/t (USD0.7/lb V) from last week.” He believes prices of ferrovanadium 50%min would drop to RMB115,000/t (USD32.6/kg V) in the coming week.
With an annual production capacity of 2,400t, they only produce according to orders now. They produced 150t in September and expect 100t in October, holding no stock at the moment.
Another producer in Northeast China claimed their ferrovanadium 50%min at RMB122,000/t (USD34.5/kg V) EXW D/A 180 days and can accept RMB120,000/t (USD34.0/kg V) for firm bids, down by RMB5,000/t (USD1.4/kg V). “Our cost keeps high as we bought vanadium pentoxide flake 98%min at RMB118,000/t (USD7.7/lb V). It’s hard to quote at the moment but in order to avoid sales risk, we would rather to sell all of them out as soon as possible,” said the source. He added, “I received an inquiry this Monday for 10t but the buyer only wanted to buy at no more than RMB116,000/t (USD32.8/kg V).” Their last deal was made early last week, when they sold 10t at RMB125,000/t (USD35.4/kg V). 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 2,400t, they produced 120t in September and expect to produce 90t in October, holding no stock now.
www.asianmetal.com
