BEIJING (Asian Metal) 9 Jul 19 – At present, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB120,000-123,000/t (USD8.1-8.3/lb V) EXW D/A 180 days, unchanged from last week.Market transactions are stable with downstream consumers only making replenishment on urgent need.Given that major producers of vanadium pentoxide flake jointly reduce supply to keep prices stable, it is predicted that prices for the material would keep unchanged in the coming week. 

A consumer in Northwest China mentioned the quotation they receive now from suppliers hold stable at RMB120,000/t (USD8.1/lb V) EXW D/A 180 days, in line with last week. “We bought 90t of vanadium pentoxide flake 98%min at RMB120,000/t (USD8.1/lb V) late last week and now almost all suppliers seal deals at the price. I don’t expect to see any change in prices in the coming week,” stated the source. 

With an annual consumption capacity of 5,130t for vanadium pentoxide flake, the plant has three production lines with only one in production now. It expects to consume 90t of the material in July, on a par with June, and has 90t in inventory now. 

Another consumer in Northwest China revealed the mainstream quotation for vanadium pentoxide flake 98%min they receive is RMB120,000/t (USD8.1/lb V) EXW D/A 180 days, in line with last week. “We purchase vanadium pentoxide flake for vanadium nitride production. We sign contracts with steel mills for vanadium nitride supply at RMB188,000/t (USD35.5/kg V) at the moment and are barely able to accept the price of vanadium pentoxide flake, but there are almost no profit margins. As a result, we tend to buy ammonium metavanadate at lower prices as raw material,” disclosed the source, adding that their last replenishment of 60t of vanadium pentoxide flake was made at RMB125,000/t (USD8.4/lb V) in late June.Given that major vanadium pentoxide flake producers jointly reduce supply to keep prices stable, he anticipates that prices for the material would keep firm in the coming week. 

With an annual consumption capacity of 2,560t for vanadium pnetoxide flake, the company expects to use 170t in July, up by 50t from June, holding 80t of stocks now. 

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