BEIJING (Asian Metal) 7 May 20 – Currently, mainstream prices of Chinese vanadium pentoxide flake 98%min stand at RMB94,000-96,000/t (USD6.2-6.3/lb V2O5) EXW D/A 180 days, the same as last week. Though the demand stays soft, few suppliers would like to drop their quotation to promote sales. Insiders believe that mainstream prices of vanadium pentoxide flake 98%min would stay firm in the coming week.

A consumer in Northeast China notes the current market price for vanadium pentoxide flake 98%min he received stands firm at RMB96,000/t (USD6.3/lb V2O5) EXW D/A 180 days, unchanged from last week. “According to what I know, all major producers quote at RMB96,000/t (USD6.3/lb V2O5) at the moment, none of them would like to drop their quotation. They are selling well to their regular clients and it’s hard for us to purchase due to their tough attitude,” said the source. In order to control their cost, they have to buy ammonium metavanadate 98%min to replace vanadium pentoxide flake 98%min. Their last deal was made early last week, when they bought 30t of ammonium metavanadate 98%min at RMB90,000/t (USD12.7/kg) EXW D/P. He believes that mainstream prices of vanadium pentoxide flake 98%min would stay in a stalemate in the coming week.

With an annual consumption capacity of 2,400t, they consumed about 990t in 2019 and consumed about 270t so far this year. They expect to consume 60t in May, unchanged from April, holding about 30t of stocks now, down by 30t from last month.

A trader in South China quotes at RMB94,500/t (USD6.2/lb V2O5) EXW D/P and they could accept RMB94,000/t (USD6.2/lb V2O5) for firm bids more than 30t, unchanged from last week. “It’s easy to find buyers in spot market and we are in no hurry to sell now. I received an inquiry for 32t late last week but the buyer wanted to buy at no more than RMB93,000/t (USD6.1/lb V2O5), I refused him directly,” said the source. Their last deal was made two weeks ago, when they sold 32t at RMB94,000/t (USD6.2/lb V2O5). Considering major producers refuse to drop their quotation, he believes that mainstream prices of vanadium pentoxide flake 98%min would stay in a stalemate in the coming week.

With a regular trading volume of 60tpm, they sold about 600t in 2019 and sold about 180t so far this year. They expect to sell 64t in May, the same as last month. They have about 30t of stocks now, down by 34t from last month.

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