BEIJING (Asian Metal) 10 Mar 20 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB93,000-96,000/t (USD6.2-6.4/lb V2O5) EXW D/A 180 days, down by RMB2,000/t (USD0.1/lb V2O5) from last week. As prices of downstream vanadium products keep dropping, consumers refuse to buy raw materials at high price level. Though major producers try to keep their quotation firm, insiders believe that mainstream prices of vanadium pentoxide flake would stay weak in the coming week.

A producer in South China quotes their vanadium pentoxide flake 98%min at RMB93,000/t (USD6.2/lb V2O5) EXW D/P and they can accept RMB92,000/t (USD6.1/lb V2O5) for firm bids, down by RMB2,000/t (USD0.1/lb V2O5) from last week. “We just sold 60t at RMB92,000/t (USD6.1/lb V2O5) this Monday to our regular client and we have taken their money in advance. We will produce and deliver within this month,” said the soucre. He added, “I heard prices of vanadium nitride drop to RMB144,000/t (USD26.9/kg V) EXW D/P now and consumers cannot accept higher prices for raw materials.” He believes that prices of vanadium pentoxide flake 98%min would keep weak in the coming week.

With an annual production capacity of 5,400t, they produced 2,000t in 2019 and have produced 400t so far this year. They expect to produce 200t in March, unchanged from February, holding no stocks now, down by 50t from last month.

A producer in North China quotes their vanadium pentoxide flake 98%min at RMB96,000/t (USD6.4/lb V2O5) EXW D/A 180 days, unchanged from last week. “We have not closed deals in March. Our consumers refuse to buy at this price level as prices of downstream vanadium products keep dropping,” said the source. Their last deal was made early last week, when they sold 64t at RMB96,000/t (USD6.4/lb V2O5) EXW D/A 180 days. He believes that prices of vanadium pentoxide flake 98%min would stay weak in the coming week.

With an annual production capacity of 20,000t, they produced 15,000t in 2019 and have produced 2,450t so far this year. They expect to produce 1,200t in March, unchanged from February, holding 200t of stocks now, down by 50t from last month.

www.asianmetal.com