BEIJING (Asian Metal) 2 Jul 19 – Laiwu Steel under Shandong Iron & Steel Group purchased 60t of ferrovanadium 50%min on 1 July with the final price standing at RMB123,000/t (USD35.6/kg V) delivered D/A 180 days. As a typical Chinese purchaser, the company purchased at a price that was about RMB2,000/t (USD0.6/kg V) lower than market expectation, which brought more pressure to the downward trend of ferrovanadium mainstream prices. 

It’s learnt that the company purchases vanadium products to produce rebar. With two rebar production lines and an annual production capacity of 2.8 million tons, the company produced about 1.25 million tons of rebar in total in the first six months of 2019. 

According to statistics, current mainstream prices for Chinese ferrovanadium 50%min are RMB125,000-128,000/t (USD36.2-37.0/kg V) EXW D/A 180 days, down by RMB7,000/t (USD2.0/kg V) from last week. With the upcoming traditional slack season for consumption, most market participants are pessimistic about market outlook. It’s predicted that prices for Chinese ferrovanadium would continue to show a downtrend under pressure in the coming week.