BEIJING (Asian Metal) 25 Mar 20 – Currently, mainstream prices for Chinese vanadium pentoxide powder 98%min stand at RMB91,000-95,000/t (USD6.0-6.2/lb V2O5) EXW D/P, down by RMB1,000/t (USD0.1/lb V2O5) from last week. Most suppliers face high sales pressure as market inventory stays at high level. Insiders believe that mainstream prices of vanadium pentoxide powder would stay weak in the coming week.

A producer in South China quotes their vanadium pentoxide powder 98%min at RMB100,000/t (USD6.6/lb V2O5) EXW D/P and they can accept RMB95,000/t (USD6.2/lb V2O5) for firm bids, down by RMB5,000/t (USD0.3/lb V2O5) from last week. “We just resumed production this Tuesday and our cost stands at RMB90,000/t (USD5.9/lb V2O5). We must guarantee at least RMB5,000/t (USD0.3/lb V2O5) for basic profit margin, or we won’t accept any orders,” said the source. He added, “I received an inquiry for 10t but the buyer only wanted to buy at no more than RMB91,000/t (USD6.0/lb V2O5).” They didn’t accept this order. He believes that mainstream prices of Chinese vanadium pentoxide powder 98%min would be weak in the coming week.

With an annual production capacity of 720t, they produced 600t in 2019 and didn’t produce during the past three months because of the virus. They can produce 50tpm in normal, holding 80t of stocks at the moment.

A consumer in South China claims the current price for vanadium pentoxide powder 98%min he received stands at RMB95,000/t (USD6.2/lb V2O5) EXW D/P, down by RMB1,000/t (USD0.1/lb V2O5) from last week. “We just bought 30t at RMB95,000/t (USD6.2/lb V2O5) this week, which is chemical grade vanadium pentoxide powder 98%min,” said the source. The quality is better than metallurgical grade, so we accept this high price level,” said the source. He believes that mainstream prices of vanadium pentoxide powder 98%min would keep steady in the coming week.

With an annual consumption capacity of 400t, they consumed 360t in 2019 and only consumed 15t so far this year. They didn’t consume in February because of the virus and expect 20t in March, holding 30t of stocks now.

www.asianmetal.com