BEIJING (Asian Metal) 20 Jun 19 – Currently, mainstream export prices for Chinese ferrovanadium 80%min stay at USD38.5-39.5/kg V FOB China, up by USD0.5/kg V from last week and about USD3.0/kg V higher than prices in the international market. As Chinese producers hold back from selling in order to keep their prices firm, the Chinese ferrovanadium export market is in a deadlock for the time being. Insiders believe that export prices for Chinese ferrovanadium would be relatively stable in the coming week.

A producer in North China quotes ferrovanadium 80%min at USD39.5/kg V FOB China in the export market now, up by USD1.0/kg V from last week. “Now in China prices for raw material vanadium pentoxide keep rising all the way and our ferrovanadium production costs therefore hover at a high level. So we can do nothing but to raise our selling price, but expected prices from overseas clients are only around USD36.0/kg V,” the source said. As export prices for ferrovanadium are lower than production costs of the material, the source has not made any sales so far in June on the export market. At present, they just sell to clients from the domestic market and refuse to accept orders if clients’ expected prices are lower than their quotation.

With an annual production capacity of 2,400t of ferrovanadium, the source produced 120t in May and expects a similar output in June, holding 30t of stocks now.

A trader in South China quotes ferrovanadium 80%min also at USD39.5/kg V FOB China in the export market now, up by USD0.5/kg V from last week. “As we have long-term cooperation with our supplier, we can purchase ferrovanadium 80%min at below USD39.0/kg V, and won’t accept downstream orders unless we can ensure us with a profit margin of USD0.5/kg V,” the source said. They last purchased 20t of the material at USD39.0/kg V early this week, and believe that export prices for Chinese ferrovanadium would be stable in the coming week.

Typically trading 40tpm of ferrovanadium, the source expects to sell 40t in June, unchanged MOM, and holds 20t of stocks now.

www.asianmetal.com