Chinese Vanadium Nitride Market Stays In A Stalemate

BEIJING (Asian Metal) 3 Jan 20 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB145,000-148,000/t (USD27.0-27.6/kg V) EXW D/A 180 days, unchanged from this Monday. Steel mills refuse to buy at high price level and the market stays in a stalemate. Insiders believe that prices of vanadium nitride would keep steady in the coming week.

A producer in North China quotes their bottom price for vanadium nitride at RMB146,000/t (USD27.2/kg V) EXW D/P, unchanged from this Monday. “To be frank, we can hardly guarantee our basic profit margin now. We bought raw material vanadium pentoxide flake 98%min at RMB93,000/t (USD6.2/lb V2O5) and the current price almost equals to our cost,” said the source. Their last deal was made late last week, when they sold 20t at RMB146,000/t (USD27.2/kg V). Considering few steel mills would like to buy at more than RMB148,000/t (USD27.6/kg V) Delivered D/A 180 days now, he believes that prices would stay steady in the coming week.

With an annual production capacity of 1,000t, they produced 60t in December, down by 20t from November, holding 30t of stocks now.

A trader in South China claimed the current price for vanadium nitride he received stands at RMB148,000/t (USD27.6/kg V) EXW D/A 180 days now, the same as this Monday. “We prepare to build some stocks at no more than RMB143,000/t (USD26.7/kg V) EXW D/P but few suppliers would like to sell at the moment,” said the source. He added, “We need guarantee at least RMB2,000/t (USD0.4/kg V) for basic profit margin then we would consider to make purchase. However, our clients refuse to buy at more than RMB145,000/t (USD27.0/kg V) EXW D/P now.” Their last deal was made two weeks ago, when they sold 40t at RMB147,500/t (USD27.5/kg V) Delivered D/A 180 days. He believes that prices of vanadium nitride would keep steady in the coming week.

With a regular trading volume of 50tpm, they sold 600t in 2018 and 550t in 2019. They sold 40t in December, down by 10t from November. They have no stocks now, down by 20t from last month.