BEIJING (Asian Metal) 9 Sep 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min are RMB130,000-133,000/t (USD8.5-8.7/lb V) EXW D/A 180 days, down by RMB1,000/t (USD0.1/lb V) from last week. As the major steel mills’ purchase prices for vanadium products keep at low levels, the profits of ferrovanadium and vanadium nitride producers are squeezed, and thus vanadium pentoxide flake suppliers may have difficulty in selling. Market participants predicted prices for Chinese vanadium pentoxide flake would move down in the coming week.

A consumer in Hubei notes the offers for vanadium peotoxide flake 98%min from suppliers are all above RMB130,000/t (USD8.5/lb V) EXW D/A 180 days at present, and their lowest prices are RMB1,000/t (USD0.1/lb V) lower than those of last week. He said, “The transaction price for our vanadium nitride is only RMB195,000/t (USD35.6/kg V), and thus the highest price for vanadium pentoxide flake 98%min we can accept is RMB125,000/t (USD8.1/lb V).” Although no vanadium pentoxide flake 98%min suppliers can accept RMB125,000/t (USD8.1/lb V) now, the consumer predicted prices for the material would drop to this level in the coming week. He last purchased 64t of the material at RMB130,000/t (USD8.5/lb V) two weeks ago.

With an annual consumption capacity of 3,000t for vanadium pentoxide flake, the consumer used 22t in August, and expects the same volume in September, holding 100t of stocks now.

A consumer in Jiangxi noted the lowest offer for vanadium peotoxide flake 98%min from suppliers in spot market was RMB133,000/t (USD8.7/lb V) EXW D/A 180 days, and the lowest price for firm bids was RMB132,000/t (USD8.6/lb V), down by RMB1,000/t (USD0.1/lb V) from last week. He said, “Major steel mills’ purchase prices for vanadium nitride stand at RMB197,000-198,000/t (USD36.0-36.2/kg V)delivered D/A 180 days. I believe prices for vanadium peotoxide flake 98%min would drop at least to RMB120,000/t (USD7.8/lb V) in the coming week. Otherwise, all vanadium nitride producers have to suspend production.” The consumer last replenished 30t of vanadium peotoxide flake 98%min at RMB133,000/t (USD8.7/lb V) two weeks ago.

With an annual consumption capacity of 2,400t for vanadium pentoxide flake, the consumer expects to use 180t in September, unchanged from August, holding 120t of stocks now.

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