Chinese Vanadium Pentoxide Flake Market Inquiries Increase

BEIJING (Asian Metal) 22 May 20 – Currently, mainstream prices of Chinese vanadium pentoxide flake 98%min stand at RMB96,000-98,000/t (USD6.3-6.4/lb V2O5) EXW D/A 180 days, up by RMB1,000/t (USD0.1/lb V2O5) from this Wednesday. Few consumers could replenish their raw material stocks in spot market due to the tight supply. Insiders believe that mainstream prices would stay firm in the coming week.

A producer in North China quotes their vanadium pentoxide flake 98%min at RMB96,000/t (USD6.3/lb V2O5) EXW D/P at the moment and would not accept any orders below this price level, up by RMB1,000/t (USD0.1/lb V2O5) from last week. “We sold 32t this Thursday at RMB96,000/t (USD6.3/lb V2O5) and we are in no hurry to accept new orders at the moment as prices are still increasing,” said the source. They mainly produce for OEM at the moment. As major producers hold the inventory and the market supply keeps tight, he believes that mainstream prices would stay firm in the coming week.

With an annual production capacity of 8,400t, they produced about 550t in April and expect the same volume in May, holding no stock for themselves at the moment, down by 60t from last month.

A trader in South China said, “We signed a 32t of sales contract at RMB94,500/t (USD6.1/lb V2O5) EXW D/P and the buyer picked up the goods this Wednesday.” They have no goods in spot market at the moment. If buyers could wait 15 days, they would like to accept RMB96,000/t (USD6.3/lb V2O5) EXW D/P now. For immediate shipment, they would add at least RMB1,000/t (USD0.1/lb V2O5) to the current quotation. He believes that mainstream prices of vanadium pentoxide flake 98%min would stay firm in the coming week.

With a regular trading volume of 60tpm, they sold about 600t in 2019 and sold about 180t so far this year. They expect to sell 64t in May, the same as April, holding no stocks now, down by 32t from last month.