BEIJING (Asian Metal) 15 Aug 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB139,000-142,000/t (USD9.1-9.3/lb V2O5) EXW D/A 180 days, down by RMB9,000/t (USD0.6/lb V2O5) from last week. Most consumers only make purchase according to urgent need and the market keeps quiet now. Considering prices of downstream vanadium products keep dropping, insiders believe prices of vanadium pentoxide will drop further in the coming week.

A consumer in Hubei claimed the lowest quotation for vanadium pentoxide 98%min they received dropped to RMB140,000/t (USD9.2/lb V2O5) EXW D/A 180 days, down by RMB10,000/t (USD0.7/lb V2O5) from last week. “Major producers are producing for long-term contracts and only some small suppliers who have stocks are in hurry to sell now. I heard one supplier has closed deal at RMB132,000/t (USD8.7/lb V2O5) EXW D/P but only for 5t, which can’t represent mainstream prices,” said the source. Their last deal was made two weeks ago, when they bought 32t at RMB150,000/t (USD9.9/lb V2O5) EXW D/A 180 days. He believes prices of vanadium pentoxide 98%min would drop to RMB135,000/t (USD8.9/lb V2O5) in the coming week.

With an annual consumption capacity of 2,500t for vanadium pentoxide flake 98%min, they expect to consume 140t in August, unchanged from last month, holding 60t of stocks now.

A consumer in Liaoning claimed the current quotation for vanadium pentoxide flake 98%min he received stands at RMB145,000/t (USD9.5/lb V2O5) EXW D/A 180 days and can buy at RMB142,000/t (USD9.3/lb V2O5) for firm bids, down by RMB8,000/t (USD0.5/lb V2O5) from last week. “Prices can hardly increase before the end of this month as there has few bidding from steel mills now. I heard Chenggang’s price for long-term contracts has dropped to RMB140,000/t (USD9.2/lb V2O5) now, down by RMB10,000/t (USD0.7/lb V2O5) from last week,” said the source. Their last deal was made early August, when they bought 60t at RMB148,000/t (USD9.7/lb V2O5). Considering prices of ferrovanadium keep dropping, he believes prices of raw material vanadium pentoxide 98%min would drop to RMB140,000/t (USD9.2/lb V2O5) in the coming week.

With an annual consumption capacity of 4,000t for vanadium pentoxide flake 98%min, they consumed 260t in July and expect the same volume in August, holding 60t for inventory now.

www.asianmetal.com