BEIJING (Asian Metal) 6 Jan 20 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB92,500-95,500/t (USD6.1-6.3/lb V2O5) EXW D/A 180 days, unchanged from last week. As prices of downstream vanadium products keep dropping, consumers refuse to buy raw material at high price level. Insiders believe that prices of vanadium pentoxide flake would stay in a stalemate in the coming week.

A producer in South China quotes their vanadium pentoxide flake 98%min at RMB93,500/t (USD6.2/lb V2O5) EXW D/P and can accept RMB93,000/t (USD6.2/lb V2O5) for firm bids, unchanged from one week ago. “We mainly produce for our regular clients and we are in no hurry to accept new orders now. No buyers would like to buy at more than RMB93,000/t (USD6.2/lb V2O5) at the moment,” said the source. Their last deal was made late last week, when they sold 30t at RMB93,000/t (USD6.2/lb V2O5). Considering prices of downstream ferrovanadium drop again and again, he believes that prices of vanadium pentoxide flake 98%min would keep weak in the coming week.

With an annual production capacity of 3,000t, they produced 2,600t in total in 2019. They produced 220t in December and expect the same volume in January, holding 60t of stocks now.

Another producer in South China claimed their quotation for vanadium pentoxide flake 98%min at RMB94,500/t (USD6.3/lb V2O5) EXW D/A 180 days and can accept RMB93,000/t (USD6.2/lb V2O5) for firm bids, the same as last week. “Our last deal was made early last week, when we sold 64t at RMB94,000/t (USD6.2/lb V2O5) EXW D/A 180 days. Considering they are our regular client, we offered a discount of RMB500/t (USD0.03/lb V2O5) to them. For new orders, we would insist on the current price level,” said the source. He added, “I received the current price for ferrovanadium 50%min at RMB97,000/t (USD27.9/kg V) EXW D/P, down by RMB1,000/t (USD0.3/kg V) from one week ago.” Considering prices of downstream vanadium products keep dropping, he believes that prices of vanadium pentoxide flake would stay weak in the coming week.

With an annual production capacity of 2,400t, they produced 2,000t in 2019 in total. They produced 160t in December and expect the same volume in January. They have about 40t in hands at the moment.

www.asianmetal.com