BEIJING (Asian Metal) 13 Apr 20 – At present, mainstream prices for Chinese vanadium nitrogen alloy stand at RMB140,000-143,000/t (USD25.9-26.4/kg V) EXW D/A 180 days, the same as last week. Though prices of raw material vanadium pentoxide flake keep firm, as most suppliers for vanadium nitrogen alloy hold too many inventory, they are fighting a price war to reduce their stocks. Insiders believe that mainstream prices of Chinese vanadium nitrogen alloy would edge down in the coming week.

A producer in Hubei quotes their vanadium nitrogen alloy at RMB140,000/t (USD25.9/kg V) EXW D/P and they could accept RMB139,000/t (USD25.7/kg V) for firm bids more than 80t, unchanged from last week. “We just sold 60t to our regular steel mill client at RMB140,800/t (USD26.0/kg V) delivered D/P, including RMB800/t (USD0.1/kg V) for freight,” said the source. He added, “I received an inquiry late last week, when one trading company wanted to buy 60t at no more than RMB139,000/t (USD25.7/kg V) and we refused him.” They would accept this price level if the buyer could buy all their 80t of stocks. He received the current price for raw material vanadium pentoxide flake 98%min at RMB94,000/t (USD6.2/lb V2O5) EXW D/P, which means their dealing prices are lower than the cost line for about RMB6,000/t (USD1.1/kg V). Considering most suppliers are fighting a price war, he believes that mainstream prices of vanadium nitrogen alloy would drop by RMB1,000/t (USD0.2/kg V) in the coming week.

With a production capacity of 2,400tpy, they produced about 120t in March and expect to produce the same volume in April, holding about 80t of stocks now.

A producer in Liaoning notes their vanadium nitrogen alloy at RMB142,000/t (USD26.2/kg V) EXW D/A 180 days and they could accept RMB141,000/t (USD26.0/kg V) EXW D/P for firm bids more than 30t, unchanged from last week. “I received an inquiry for 30t late last week and I showed our bottom price to the buyer. However, I heard some other supplier just quoted RMB138,000/t (USD25.5/kg V) EXW D/P,” said the source. He learnt prices of raw material vanadium pentoxide flake 98%min keep firm at RMB96,000/t (USD6.3/lb V2O5) EXW D/A 180 day, unchanged from last week. As suppliers are in hurry to reduce their stocks, he believes that mainstream prices of vanadium nitrogen alloy would drop by RMB1,000/t (USD0.2/kg V) in the coming week.

With an annual production capacity of 3,000t, they only produce by 1/3 production line now. They expect to produce 90t in April, down by 10t from March, holding about 20t of stocks now.

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