BEIJING (Asian Metal) 21 May 20 – Currently, mainstream prices of Chinese vanadium pentoxide flake 98%min stand at RMB95,000-97,000/t (USD6.2-6.4/lb V2O5) EXW D/A 180 days, up by RMB500/t (USD0.03/lb V2O5) from last week. Major suppliers hold their stocks and refuse to sell to create the illusion that the market is in short supply. Insiders believe that prices of vanadium pentoxide flake would stay in a stalemate in the coming week.

A consumer in North China notes that he received the current price of vanadium pentoxide flake 98%min from major producer at RMB96,000/t (USD6.3/lb V2O5) EXW D/A 180 days, unchanged from last week. “Major suppliers refuse to sell their vanadium pentoxide flake now and we have to buy from traders. However, even we would like to accept RMB95,000/t (USD6.2/lb V2O5) EXW D/P, there is still no resources in spot market,” said the source. Due to the shortage of raw materials, they increased their quotation for vanadium products accordingly. He believes that prices of vanadium pentoxide flake 98%min would stay firm in the coming week.

With an annual consumption capacity of 3,600t, they consumed about 1,140t in 2019 and only about 170t so far this year due to the COVID-19. They expect to consume 60t in May, up by 20t from April, holding about 30t of stocks now, unchanged from last month.

A consumer in South China notes the current price for vanadium pentoxide flake 98%min he received stands at RMB96,000/t (USD6.3/lb V2O5) EXW D/P, up by RMB1,000/t (USD0.07/lb V2O5) from last week. “Major producers have no stocks and I believe that they are on purpose. The market supply and demand keeps balance now,” said the source. It’s hard for them to buy in spot market as most suppliers prefer to hold the inventory. Their last deal was made two weeks ago, when they bought 90t at RMB96,000/t (USD6.27/lb V2O5) EXW D/A 180 days. He believes that mainstream prices of vanadium pentoxide flake 98%min would stay in a stalemate in the coming week.

With a consumption capacity of 5,140tpy, they consumed about 1,540t in 2019 and about 780t so far this year. They expect to consume 285t in May, up by 70t from last month. They have about 90t in hands now, down by 50t from last month.

www.asianmetal.com