BEIJING (Asian Metal) 28 Feb 20 – At the moment, Chinese vanadium nitride market sees oversupply and prices keep dropping. Currently, mainstream prices for Chinese vanadium nitride stand at RMB150,000-153,000/t (USD27.8-28.4/kg V) EXW D/A 180 days, down by RMB6,000/t (USD1.1/kg V) from last week. As few steel mills are making purchase now, insiders believe that prices of Chinese vanadium nitride would edge down in the coming week.

A trader in South China noted the current price for vanadium nitride he received stands at USD150,000/t (USD27.8/kg V) EXW D/P and they can buy at RMB149,000/t (USD27.6/kg V) for firm bids, down by RMB6,000/t (USD1.1/kg V) from last week. “Our last deal was made this Wednesday, when we bought 20t at RMB149,000/t (USD27.6/kg V),” said the source. He added, “I received the current price for ferrovanadium 50%min drops to RMB98,000/t (USD28/kg V) EXW D/P now, down by RMB5,000/t (USD1.4/kg V) from last week.” Considering most producers have started to reproduce after the plague control and the supply situation stays loose, he believes that prices of Chinese vanadium nitride would drop by RMB2,000/t (USD0.4/kg V) in the coming week.

With a regualr trading volume of 40t, they sold 400t in 2019 and have sold 40t so far this year. They sold 40t in January and didn’t sell in February due to the plague in China. They have 20t of stocks now, down by 20t from last month.

A producer in North China quotes their bottom price for vanadium nitride at RMB150,000/t (USD27.8/kg V) EXW D/P at the moment, down by RMB10,000/t (USD1.9/kg V) from last week. “We are in no hurry to accept new orders now as we didn’t prepare enough raw material. We mainly produce according to the orders from our major steel mill client to avoid the market risk,” said the source. He added, “We just replenished 32t of vanadium pentoxide flake 98%min last week at RMB96,000/t (USD6.4/lb V2O5) EXW D/A 180 days. If the buyer for vanadium nitride could pay first, we would consider to supply at out bottom price level or we would not accept any orders.” Considering the supply situation in spot market stays loose, he believes that prices of Chinese vanadium nitride would drop by RMB1,000/t (USD0.2/kg V) in the coming week.

With an annual production capacity of 960t, they produced 40t in February, down by 20t from January, holding 20t of regular stocks now, unchanged from last month.

www.asianmetal.com