Domestic Vanadium Price Declines To Reduce Import Profit Margin
www.ferroalloynet.com: The domestic vanadium market has fallen a step since late August, and is still in a weak deadlock currently. Judging from the market mentality and quotation situation, there is still a small decline in the later market. The supply of raw materials is sufficient, and the alloy consumption can not keep up, resulting in the downward trend of vanadium price. At the same time, the international vanadium price began to rise slightly last month, and is also in a stalemate state at present. Currently, the price difference of vanadium at home and abroad has been significantly reduced compared with June to August.
On Sep. 2nd, the price of ferrovanadium in Europe continued to maintain at 24.4-25.5 USD/kgV, convert into 50# ferrovanadium RMB price was 83,400-87,200 Yuan/ton. The price of European V2O5 maintained at 5.1-5.6 USD/LB V2O5, convert into V2O5 98% RMB price was 75,300-82,700 Yuan/ton; the price of ferrovanadium in United States was 9.8-10.7 USD/LB V, convert into 50# ferrovanadium RMB price was 73,900-80,600 Yuan/ton.
Based on the median price of ferrovanadium and vanadium pentoxide in European market, the current price of imported V2O5 flake is about 93500 yuan / ton with tax, plus freight and port charges, the estimated cost is about 95500 yuan / ton. Compared with the current domestic vanadium price, the profit margin is preliminarily estimated to be 5000 yuan / ton. Based on the same calculation, the cost price of imported ferrovanadium is nearly 102000 yuan / ton in cash with tax, which is little difference between the current domestic price of ferrovanadium. The profit space of imported ferrovanadium in the later market is not much, unless a lower price is agreed with foreign manufacturers. It is understood that it is not easy to purchase V2O5 flake from the international market at low prices, and some transactions are near high prices.
According to the calculation of shipping time from one month to one and a half months, the sources of import orders in August will arrive in September one after another. Customs clearance during the National Day holiday will be affected. It is possible that some goods arriving in September will complete customs declaration and enter the domestic market after the holidays. Generally speaking, the arrival volume of imported vanadium products may remain high in September, and it is expected to decline slightly in October, and will still be accompanied by high supply in September and October.
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