Export Prices for Chinese Ferrovanadium Down Under Pressure
BEIJING (Asian Metal) 2 Jul 19 – Because domestic bidding prices for ferrovanadium are not high as expected, prices for ferrovanadium move down under pressure on the whole, and export prices for ferrovanadium begin to fall affected by this. Currently, mainstream export prices for Chinese ferrovanadium 80%min stay at USD37.5-38.5/kg V FOB China, down by USD0.5/kg V from last week. Due to the sluggish downstream market demand, market participants are generally unconfident about the future market. It is expected that prices for ferrovanadium in China would keep a slight decline in the coming week.
A producer in Liaoning quotes ferrovanadium 80%min at USD38.5/kg V FOB China now. And he can accept the lowest price of USD38.0/kg V for firm bids, down by USD0.5/kg V from last week. He said, “We mainly export ferrovanadium to Europe, but now the highest price acceptable to European buyers is only USD35.0/kg V, which is USD3.0/kg V lower than our bottom price. We can not accept their purchase enquiries. At present, we mainly sell to domestic buyers.” He noted that raw material vanadium pentoxide flake suppliers offer over RMB120,000/t (USD8.1/lb V) EXW D/P for now, and they will not close the orders of ferrovanadium under their bottom price considering the high raw material prices. He thinks that prices for Chinese ferrovanadium would keep weakly stable in the forthcoming week.
With an annual production capacity of 2,400t, the producer produced 100t in June and expects the same output in July. He holds 30t of stocks now.
Another producer in Liaoning quotes the lowest price of ferrovanadium 80%min at USD37.8/kg V FOB China now, down by USD0.7/kg V from last week. He said, “Now it is the low season, and the domestic price is about USD3.0/kg V higher than the price on the international market. Meeting with multiple difficulties, we have not received any enquiries in the past two weeks.” He added that he last signed an order of 30t ferrovanadium 80%min at USD36.0/kg V three weeks ago. Considering that it is off season in summer now, he thinks that export prices for Chinese ferrovanadium would keep weakly stable in the forthcoming week.
With an annual production capacity of 2,400t, the producer produced 30t in June and expects to produce 20t in July due to the low demand. He holds no stocks and produce based on the sales now.
www.asianmetal.com
