BEIJING (Asian Metal) 6 Jun 19 – Chaoyang Jinshi Mining Co., Ltd., with an annual production capacity of 960t of ammonium metavanadate, started the trial production of the material in mid-May and expects to begin scale production after the Dragon Boat Festival (June 7), a source from the company told Asian.

“Our company is newly established and just started trial production of ammonium metavanadate on May 15, with inventory being replenished currently. Downstream customers send enquiries actively now, so we believe that prices for ammonium metavanadate 98%min would generally rise above RMB120,000/t (USD8.0/lb V) in the coming week, despite the fact that we haven’t closed any deals so far,” said the source. Only accepting pre-orders now, the company refuses any counteroffers and won’t take orders with prices lower than its quotation.

With an annual production capacity of 960t, the company produced about 10t during trial production in May and expects the output to rise to 60t in June, holding inventory of around 10t now.

Currently, mainstream prices for Chinese ammonium metavanadate 98%min stand at RMB107,000-110,000/t (USD7.2-7.4/lb V) Inc-VAT EXW D/P, up by about RMB4,000/t (USD0.3/lb V) from the previous week. Due to the merger between two vanadium industry giants, Pangang Group Vanadium & Titanium and Sichuan Desheng, market participants generally have a positive outlook and it is expected that prices for Chinese ammonium metavanadate 98%min would rise above RMB115,000/t (USD7.7/lb V) in the coming week.