BEIJING (Asian Metal) 16 Dec 19 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB94,000-97,000/t (USD6.2-6.4/lb V2O5) EXW D/A 180 days, down by RMB1,500/t (USD0.1/lb V2O5) from last week. As prices of downstream vanadium products nearly dropped to the cost line, consumers refuse to buy raw material at high price level and major producers of vanadium pentoxide flake finally dropped their quotation to catch up mainstream prices. Insiders believe that prices of vanadium pentoxide flake would edge down in the coming week.

A consumer in South China noted the current price for vanadium pentoxide flake 98%min he received dropped to RMB96,000/t (USD6.4/lb V2O5) EXW D/A now, down by RMB4,000/t (USD0.3/lb V2O5) from one week ago. “We mainly buy raw materials from major producers and they have to drop their quotation as prices of downstream vanadium nitride can hardly sell at above RMB149,000/t (USD27.7/kg V) Delivered D/A 180 days now,” said the source. Their last deal was made last Friday, when they bought 64t at RMB96,000/t (USD6.4/lb V2O5). He believes that prices of vanadium pentoxide flake 98%min would drop by RMB1,000/t (USD0.1/lb V2O5) again in the coming week.

With an annual consumption capacity of 2,000t, they consumed 1,800t in 2018 and have consumed 1,750t so far this year. They expect to consume150t in December, the same as November, holding 90t of stocks now, up by 30t from last month.

Another consumer in South China claimed that the current price for vanadium pentoxide flake 98%min he received stands at RMB95,000/t (USD6.3/lb V2O5) EXW D/P, down by RMB1,000/t (USD0.1/lb V2O5) from last week. “I heard major producers dropped their quotation from RMB100,000/t (USD6.6/lb V2O5) EXW D/A 180 days to RMB96,000/t (USD6.4/lb V2O5) now. However, it’s still too high for us as prices of vanadium nitride can only sell at about RMB145,000/t (USD27.0/kg V) EXW D/P at the moment,” said the source. He added, “We can at most accept RMB93,000/t (USD6.2/lb V2O5) EXW D/P for vanadium pentoxide flake 98%min at the moment.” Their last deal was made two weeks ago, when they bought 64t at RMB96,000/t (USD6.4/lb V2O5) EXW D/P. He believes that prices of vanadium pentoxide flake 98%min would drop by RMB2,000/t (USD0.1/lb V2O5) in the coming week.

With an annual consumption capacity of 3,000t, they consumed 2,800t in 2018 and have consumed 2,600t so far this year. They expect to consume 200t in December, the same as November, holding 90t of stocks now, down by 30t from last month.

www.asianmetal.com