EIJING (Asian Metal) 1 Nov 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min dropped to RMB98,000-101,000/t (USD6.4-6.6/lb V2O5) EXW D/A 180 days, down by RMB10,000/t (USD0.7/lb V2O5) from this Tuesday. As prices of downstream vanadium products keep dropping, producers of vanadium pentoxide flake are facing high pressure to sale at high price level. Insiders believe prices of vanadium pentoxide flake 98%min would keep dropping in the coming week.

A producer in North China noted the current price for vanadium pentoxide flake 98%min he received stands at RMB100,000 (USD6.6/lb V2O5) EXW D/A 180 days, down by RMB10,000/t (USD0.7/lb V2O5) from early this week. “We just bought 30t at RMB100,000/t (USD6.6/lb V2O5) for urgent need. As low price import resources of vanadium pentoxide flake come into Chinese market, producers in China have to drop their price to maintain a competitive edge,” said the source. He added, “The current dealing price of their vanadium nitride has dropped to RMB160,000/t (USD29.5/kg V) EXW D/A 180 days, down by RMB15,000/t (USD2.8/kg V) from one week ago.” Considering downstream market keeps soft, he believes prices of vanadium pentoxide falke 98%min would drop to RMB95,000/t (USD6.2/kg V) in the coming week.

With an annual consumption capacity of 3,000t, they consumed 2,400t in 2018 and have consumed 2,000t this year. They consumed 200t in October, the same with September, holding 60t of stocks now, down by 40t from one month ago.

A trader in South China claimed the current price for vanadium pentoxide flake 98%min stays at RMB100,000/t (USD6.6/lb V2O5) EXW D/A 180 days and can buy at RMB99,000/t (USD6.5/lb V2O5) for firm bids, down by RMB11,000/t (USD0.7/lb V2O5) from early this week. “We just bought 32t this Thursday at RMB96,000/t (USD6.3/lb V2O5) EXW D/P and we still need another 32t as our client signed a 60t of vanadium nitride contract, which needs 85t of vanadium pentoxide flake in total,” said the source. He added, “Some suppliers call me frequiently to promote sales but I want to delay the purchase as prices are dropping,” said the source. He believes prices of vanadium pentoxide flake 98%min in China would drop to RMB90,000/t (USD5.9/lb V2O5) in the coming week.

With a regular trading volume of 60tpm, they sold 700t in 2018 and have sold 550t this year. They sold 60t in October, the same with September, holding 53t of stocks now, up by 32t from last month.

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