BEIJING (Asian Metal) 7 Nov 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB93,000-96,000/t (USD6.2-6.4/lb V2O5) EXW D/A 180 days, down by RMB2,000/t (USD0.1/lb V2O5) from this Tuesday. As prices of downstream vanadium products keep dropping, few consumers would like to build stock for raw material and the demand of vanadium pentoxide flake stays soft. Insiders believe prices of vanadium pentoxide flake would drop accordingly in the coming week.

A consumer in Henan noted the lowest quotation for vanadium pentoxide flake 98%min he received stands at RMB95,000/t (USD6.3/lb V2O5) EXW D/A 180 days, down by RMB3,000/t (USD0.2/lb V2O5) from early this week. “We just signed a sales contract for 30t of vanadium nitride at RMB143,800/t (USD26.7/kg V) Deliver D/A 180 days this week. According to the dealing price, we can at most accept RMB90,000/t (USD6.0/lb V2O5) for raw material,” said the source. He added, “Though no suppliers would like to sell at this price level yet, I believe prices of vanadium pentoxide flake 98%min would drop to RMB90,000/t (USD6.0/lb V2O5) in the coming week.” Their last deal was made early last week, when they bought 32t at RMB100,000/t (USD6.6/lb V2O5).

With an annual consumption capacity of 3,000t, they consumed 2,500t in 2018 and have consumed 1,800t this year. They expect to consume 200t in November, down by 30t from October, holding 150t at the moment, unchanged from last month.

A consumer in Liaoning claimed the current price for vanadium pentoxide flake 98%min he received stands at RMB98,000/t (USD6.5/lb V2O5) EXW D/A 180 days now and can buy at RMB96,000/t (USD6.4/lb V2O5) for firm bids, down by RMB4,000/t (USD0.3/lb V2O5) from early this week. “Our dealing price for ferrovanadium 50%min has dropped to RMB98,000/t (USD28.0/kg V) EXW D/P now. The processing cost from raw material to ferrovanadium needs about RMB7,000/t (USD2.0/kg V), so the current price for vanadium pentoxide flake is still too high,” said the source. Their last deal was made late October, when they bought 30t at RMB105,000/t(USD6.9/lb V2O5). He believes prices of vanadium pentoxide flake 98%min would drop by RMB3,000/t (USD0.2/lb V2O5) in the coming week.

With an annual consumption capacity of 1,200t, they consumed 1,100t in 2018 and have consumed 850t this year. They consumed 90t in October and expect the same volume in November, holding 60t of stocks now, unchanged from last month.

www.asianmetal.com