BEIJING (Asian Metal) 19 Mar 20 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB142,000-145,000/t (USD26.8-27.4/kg V) EXW D/A 180 days, down by RMB3,000/t (USD0.6/kg V) from last week. As the market inventory stays at high level, most suppliers face high sales pressure and they have to drop their quotation to promote sales. However, at the same time, prices of raw materials keep steady. Insiders believe that mainstream prices of vanadium nitride would stay weak in the coming week.

A producer in South China quotes their vanadium nitride at RMB145,000/t (USD26.8/kg V) EXW D/A 180 days and they won’t accept any discount for firm bids, down by RMB3,000/t (USD0.6/kg V) from last week. “The current quotation almost equals to our cost. We won’t accept any orders if prices are lower than this price level,” said the source. He added, “They bought raw material vanadium pentoxide flake 98%min at RMB93,500/t (USD6.2/lb V2O5) EXW D/P.” They received an inquiriy for 30t during the past week but the buyer only wanted to buy at no more than RMB138,500/t (USD25.6/kg V) EXW D/P. They didn’t accept. Considering the cost keeps firm, believes that mainstream prices of vanadium nitride would stay steay in the coming week.

With an annual production capacity of 2,000t, they produced 80t in February and expect 100t in March, holding 100t of stocks now, up by 40t from last month.

A trader in South China notes the current price for vanadium nitride he received stands at RMB143,000/t (USD26.4/kg V) EXW D/P and they can buy at RMB141,000/t (USD26.1/kg V) for firm bids, down by RMB4,000/t (USD0.7/kg V) from last week. “We bought 20t at RMB141,000/t (USD26.1/kg V) this Tuesday. I believe that bidding prices would be surely higher than this price level at the end of March. However, I heard some buyers are discussing the purchase at only RMB137,000/t (USD25.3/kg V) now,” said the source. He leant prices of raw material vanadium pentoxide flake 98%min stay firm at RMB96,000/t (USD6.3/kg V) EXW D/A 180 days, unchanged from last week. He believes that prices of vanadium nitride would be steady in the coming week.

With a regular trading volume of 50tpm, they sold 600t in 2019 and have not sold any tons this year. They expect to sell 30t in March. Holding 20t of stocks now.

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