Hubei Chongvanadium To Stop Production For Vanadium Nitride

BEIJING (Asian Metal) 10 Apr 20 – With an annual production capacity of 2,000t for vanadium nitride, Hubei Chongvanadium Industry And Trade Co., LTD prepares to stop production at the end of April because of the currant price war.

“At the moment, prices of raw material vanadium pentoxide flake 98%min stand firm at RMB93,000/t (USD6.1/lb V2O5) EXW D/P and our cost stays at RMB145,000/t (USD26.7/kg V) for vanadium nitride. However, no buyer would like to buy at more than RMB143,000/t (USD26.3/kg V) now,” said the source. He heard some producers only sell at RMB139,000/t (USD25.6/kg V) now, which is about RMB7,000/t (USD1.3/kg V) below the average cost line. As most suppliers are fighting a price war, they prepare to stop production from the end of this month, when they would finish the signed orders.

Located in Chongyang, Hubei, they expect to produce 90t in April, unchanged from March, holding about 60t of stocks at the moment. The company’s situation is typical of all vanadium nitride producers in China.

At the moment, prices of Chinese vanadium nitride stand at RMB140,000-143,000/t (USD25.8-26.3/kg V) EXW D/A 180 days, down by RMB1,000/t (USD0.2/kg V) from last week.