BEIJING (Asian Metal) 15 May 20 – Currently, mainstream prices of Chinese vanadium pentoxide powder 98%min stand at RMB92,000-95,000/t (USD6.0-6.2/lb V2O5) EXW D/P, unchanged from last week. Suppliers hold their stocks and are in no hurry to accept orders at the moment. Considering the market stays calm, insiders believe that mainstream prices of vanadium pentoxide powder 98%min would stay firm in the coming week.

A producer in South China quotes their vanadium pentoxide powder 98%min at RMB95,000/t (USD6.2/lb V2O5) EXW D/P and could accept RMB94,500/t (USD6.2/lb V2O5) for firm bids, unchanged from last week. “We are in no hurry to sell at the moment as market prices are lower than our expectation. If consumers who could pay 100% in advance, we would like to sell 20t of our stocks,” said the source. They are building stocks at the moment and would not accept any orders below their price bottom. Considering prices of downstream vanadium products rebounded slightly during the past week, he believes that mainstream prices of vanadium pentoxide powder 98%min would stay firm in the coming week.

With a production capacity of 1,000t for vanadium pentoxide powder, they resumed production from the middle of April and produced about 30t in April. They expect to produce 60t in May, holding 20t of regular stocks.

Another producer in South China quotes their vanadium pentoxide powder 98%min at RMB93,000/t (USD6.1/lb V2O5) EXW D/P and would not accept any discount for firm bids, unchanged from last week. “Inquiries increased slightly in near term and we received three inquiries during the past week. However, we didn’t close any deals due to price divergence,” said the source. One of their regular clients send inquiry this Wednesday and wanted to buy 5t at no more than RMB92,000/t (USD6.0/lb V2O5), they refused this order directly. Their last deal was made two weeks ago, when they sold 10t at RMB94,000/t (USD6.1/lb V2O5). Though consumers refuse to accept their current quotation, considering the cost keeps high, he believes that market prices of vanadium pentoxide powder would stay firm in the coming week.

With an annual production capacity of 800t, they produced about 510t in 2019 and only produced 50t so far this year due to the COVID-19. They didn’t produce in April and expect to produce 50t in May, holding about 15t of stocks now.

www.asianmetal.com