BEIJING (Asian Metal) 12 Feb 20 – Currently, mainstream prices for Chinese vanadium nitride stand at RMB158,000-161,000/t (USD29.4-30.0/kg V) EXW D/A 180 days, up by RMB2,000/t (USD0.4/kg V) from this Monday. Few suppliers would like to accept orders at low price level as they can’t get enough raw materials due to the no service of the physical distribution. Insiders believe that prices of Chinese vanadium nitride would keep increasing in the coming week.

A producer in South China quoted their vanadium nitride at RMB165,000/t (USD30.7/kg V) EXW D/A 180 days and they can accept RMB160,000/t (USD29.8/kg V) for firm bids, up by RMB2,000/t (USD0.4/kg V) from this Monday. “Major producers of vanadium pentoxide flake refuse to sell at the moment and we can only buy raw material from traders. I received the current prices for vanadium pentoxide flake 98%min in spot market increased to RMB98,000/t (USD6.5/lb V2O5) EXW D/P, up by RMB3,000/t (USD0.2/lb V2O5) from last week,” said the source. Their last deal was made late last month, when they sold 60t at RMB149,000/t (USD27.7/kg V) Delivered D/A 180 days. He believes that dealing prices of Chinese vanadium nitride would increase to RMB165,000/t (USD30.7/kg V) in the coming week.

With an annual production capacity of 3,600t, they produced 1,160t in 2019, down by 3.3% from 2018. They produced in normal during the Spring Festival. They expect to produce 100t in February, the same as January, holding 50t of stocks now, unchanged from last month.

A producer in North China quoted their price for vanadium nitride at RMB160,000/t (USD29.8/kg V) EXW D/A 180 days and they can accept RMB158,000/t (USD29.4/kg V) for firm bids, up by RMB2,000/t (USD0.4/kg V) from this Monday. “We sold 20t at RMB148,000/t (USD27.6/kg V) late January. We haven’t closed any deals this Month. However, considering prices of raw material keep increasing, we have to increase our quotation accordingly,” said the source. He added, “I heard prices of raw material vanadium pentoxide flake 98%min have increased to RMB106,000/t (USD7.0/lb V2O5) EXW D/P from our overseas supplier, up by RMB10,000/t (USD0.7/lb V2O5) from last week.” Considering the cost keeps going up and the physical distribution cannot work in normal now, he believes that prices of Chinese vanadium nitride would increase by RMB3,000/t (USD0.6/kg V) in the coming week.

With a production capacity of 1,200t, they started to produce from October 2019 and they produced 100t in total last year. They have produced 50t so far this year, holding 20t of stocks now, down by 30t from last month.

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