Chinese Vanadium Pentoxide Flake Market Stays In A Stalemate
BEIJING (Asian Metal) 4 Dec 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stay at RMB95,000-98,000/t (USD6.2-6.4/lb V2O5) EXW D/A 180 days, unchanged from this Monday. Consumers refuse to buy at high price level but suppliers refuse to drop their quotation to promote sales either. The market keeps in a stalemate. Considering prices of downstream vanadium products can hardly rebound, insiders believe prices of vanadium pentoxide flake would stay weak in the coming week.
A consumer in Northeast China claimed the current quotation for vanadium pentoxide flake 98%min he received stands at RMB95,000/t (USD6.2/lb V2O5) EXW D/P, unchanged from this Monday. “If we buy raw material at this price level, we can hardly guarantee the cost recovery,” said the source. He added, “We can sell ferrovanadium 50%min at no more than RMB100,000/t (USD6.6/lb V2O5) EXW D/P at the moment. According to the sales price, we can at most accept RMB92,000/t (USD6.0/lb V2O5) for vanadium pentoxide flake 98%min.” Their last deal was made two weeks ago, when they bought 64t at RMB97,000/t (USD6.4/lb V2O5). He believes prices of vanadium pentoxide flake would keep weak in the coming week.
With an annual consumption capacity of 2,400t, they consumed 1,800t in 2018 and have consumed 1,600t so far this year. They consumed 140t in November and expect the same volume in December, holding 50t of stocks now, down by 50t from last month.
Another consumer in Northeast China noted the current price he received stays at RMB98,000/t (USD6.4/lb V2O5) EXW D/A 180 days and can buy at RMB96,500/t (USD6.3/lb V2O5) for firm bids, unchanged from this Monday. “Suppliers refuse to drop their quotation and we can hardly find low price raw materials now. According to the market sales situation of downstream vanadium products, we can at most accept RMB93,500/t (USD6.1/lb V2O5) EXW D/P for vanadium pentoxide flake 98%min now,” said the source. They are in no hurry to replenish raw materials inventory now. Their last deal was made early last week, when they bought 32t at RMB95,500/t (USD6.3/lb V2O5) EXW D/P. He believes prices of vanadium pentoxide flake 98%min would stay weak in the coming week.
With an annual consumption capacity of 2,800t, they didn’t consumed in 2018 and have consumed 1,200t so far this year. They expect to consume 200t in December, unchanged from November, holding 90t of stocks now, down by 30t from last month.
www.asianmetal.com
