BEIJING (Asian Metal) 20 May 20 – Currently, mainstream prices of Chinese vanadium nitride stand at RMB152,000-155,000/t (USD27.8-28.3/kg V) EXW D/A 180 days, up by RMB3,000/t (USD0.5/kg V) from late last week. Few suppliers would like to drop their prices to close deals due to the high cost of raw materials. Insiders believe that mainstream prices of vanadium nitride would keep increasing in the coming week.

A producer in North China quotes their vanadium nitride at RMB155,000/t (USD28.3/kg V) delivered D/A 180 days and could accept RMB154,500/t (USD28.2/kg V) for firm bids, up by RMB4,500/t (USD0.8/kg V) from last week. “Prices of raw material vanadium pentoxide flake 98%min stand firm at RMB96,000/t (USD6.3/lb V2O5) EXW D/A 180 days at the moment, unchanged from two weeks ago. In order to guarantee our basic profit margin, we have to increase our price to recover previous losses,” said the source. They just sold 10t to one of their regular clients at RMB154,500/t (USD28.2/kg V) this Tuesday. They sold 30t last week at RMB150,000/t (USD27.4/kg V). He believes that mainstream prices of vanadium nitride would increase by RMB5,000/t (USD0.9/kg V) in the coming week.

With a production capacity of 1,500tpy, they produced about 1,140t in 2019 and about 290t so far this year. They didn’t produce in April and expect to produce about 80t in May, holding about 60t of stocks now, down by 40t from last month.

Another producer in North China quotes their vanadium nitride at RMB153,000/t (USD28.0/kg V) EXW D/A and would not accept any discount for firm bids, up by RMB3,000/t (USD0.5/kg V) from last week. “We could not accept any orders for immediate shipment until 20 June. If anyone who could accept our bottom price and wait for one month, we would sign contract,” said the source. Their last deal was made two weeks ago, when they sold 50t at RMB150,000/t (USD27.4/kg V). As most suppliers are overly optimistic for the market rebounding, he believes that prices of vanadium nitride would edge up in the coming week.

With an annual production capacity of 5,000t, they only produce by 50% of the capacity this year. They produced about 200t in April and expect the same volume in May, holding no stocks now, down by 120t from last month.

www.asianmetal.com