BEIJING (Asian Metal) 17 Jul 19 – Jinzhou Rongxin Ferroalloy Co., Ltd., with an annual production capacity of 1,500t of ferrovanadium 50%min, has delayed the resumption of ferrovanadium production as the downstream market sees weak demand and raw material price keeps at a high level now, a source from the company told Asian Metal. The company originally planned to resume production on July 15. 

“We have been out of production since last October till now. We originally planned to resume production in mid-July; however, downstream purchasers hold wait-and-see attitudes toward the market now, so it would be highly risky for us to restart production without orders,” the source revealed. He noted, “At present, prices for raw material vanadium pentoxide flake 98%min I receive are higher than RMB120,000/t (USD8.0/lb V) EXW D/A 180 days. Even so, we cannot purchase the spot material. Besides, large-sized plants control their delivery, which leads to the tight supply of raw material.” Under the double pressure from the shortage of raw material and demand, the company has delayed the resumption plan and just waits on the sidelines now. 

The company is located in Jinzhou, Liaoning, the highest concentration of ferrovanadium production in China. It is one of the thirteen ferrovanadium production enterprises in Jinzhou, Liaoning. 

This Wednesday, mainstream prices for Chinese ferrovanadium 50%min are RMB129,000-132,000/t (USD37.3-38.2/kg V) EXW D/A 180 days, up by RMB2,000/t (USD0.6/kg V) from last week. As its raw material vanadium pentoxide sees a tight supply and a high level price, prices for Chinese ferrovanadium are expected to keep firm in the coming week.