Echeng Steel Fails To Purchase Vanadium Nitride

BEIJING (Asian Metal) 17 Jul 20 – Baowu Group Echeng Iron & Steel Co. LTD plans to buy 45t of vanadium nitride on 16 July but failed due to the increasing prices.

“We plan to buy 45t of vanadium nitride on 16 July at no more than RMB165,000/t (USD30.6/kg V) delivered D/A 180 days. However, no suppliers would accept orders below RMB168,000/t (USD31.2/kg V),” a source from this company said. They gave up this bidding at last and prefer to consume history stocks. They made the last deal for 60t at RMB163,000/t (USD30.2/kg V) late June. As prices of raw material vanadium pentoxide flake 98%min keep steady during the past two weeks, he believes that few steel mills would accept the increasing prices of vanadium nitride in the coming two weeks.

Located in Echeng, Hubei, they are a typical vanadium nitride consumer in China. With a consumption capacity of 720tpy, they consumed about 600t in 2019 and about 330t in the first half of this year. They expect to consume about 60t in July, up by 10t from June, holding about 60t of stocks now, the same as last month.

Currently, mainstream prices of Chinese vanadium nitride stand at RMB167,000-170,000/t (USD31-31.5/kg V) delivered D/A 180 days, up by RMB1,000/t (USD0.2/kg V) from this Wednesday.