Chinese Ferrovanadium Prices Stay Weak
BEIJING (Asian Metal) 3 Dec 19 – Currently, mainstream prices for Chinese ferrovanadium 50%min stay at RMB101,000-104,000/t (USD28.7-29.5/kg V) EXW D/A 180 days, unchanged from last week. Most suppliers are facing high pressure to reduce their stocks as the demand keeps soft. Insiders believe prices of ferrovanadium would keep weak in the coming week.
A producer in Northeast China quotes their ferrovanadium 50%min at RMB105,000/t (USD29.8/kg V) EXW D/A 180 days and can accept RMB104,000/t (USD29.5/kg V) for firm bids, unchanged from last week. “Our last deal was made late last week, when we sold 20t at RMB104,000/t (USD29.5/kg V) Delivered D/A 180 days. Though inquiries are hard to see at the moment, we won’t drop our quotation before we could find low price raw materials,” said the source. He added, “The current prices for vanadium pentoxide flake 98%min of major producers keeps at RMB100,000/t (USD6.6/lb V2O5) EXW D/A 180 days and traders would sell at RMB95,000/t (USD6.2/lb V2O5), which means we can get at most RMB2,000/t (USD0.6/kg V) for profit margin.” He believes prices of ferrovanadium 50%min would keep steady in the coming week.
With an annual production capacity of 2,400t, they produced 150t in November and expect 120t in October, holding 30t of stocks now.
Another producer in Northeast China claimed the bottom price of their ferrovanadium 50%min at RMB100,000/t (USD28.4/kg V) EXW D/P and RMB102,000/t (USD29.0/kg V) EXW D/A 180 days, unchanged from last week. “We bought 32t of vanadium pentoxide flake 98%min at RMB93,000/t (USD6.1/lb V2O5) EXW D/P two weeks ago, the current quotation for ferrovanadium almost equals to our cost. It’s no meaning to quote high price now as inquiries are hard to see,” said the source. Their last deal was made early last week, when they sold 30t at RMB102,000/t (USD29.0/kg V) Delivered D/A 180 days to their regular steel mill client. Considering prices of vanadium pentoxide flake drop slowly, he believes prices of ferrovanadium would keep weak in the coming week.
With an annual production capacity of 1,800t, they produced 140t in November and expect 120t in December, holding 40t of stocks now.
www.asianmetal.com
