Leading Ammonium Metavanadate Enterprises Stop Offering Due to Falling Prices
BEIJING (Asian Metal) 4 Jul 19 – Currently, mainstream transaction prices for Chinese ammonium metavanadate 98%min stand at RMB115,000-118,000/t (USD7.7-7.9/lb V) Inc-VAT EXW D/P, down by RMB7,000/t (USD1,017/lb V) from last Thursday. Due to the weak downstream demand, prices for the material keep falling. Leading ammonium metavanadate enterprises stopped offering in succession, and would negotiate the price when receiving an order. Insiders are pessimestic about the market outlook, so prices for Chinese ammonium metavanadate might be weakly stable in the coming week.
A major producer in Hebei noted they had stopped offering for ammonium metavanadate, mainly making deliveries for concluded orders. He said, “We sold 60t of ammonium metavanadate 98%min at RMB125,000/t (USD8.4/lb V) Inc-VAT EXW D/P early last week, but we stopped offering this week as it became very difficult to conclude orders at this price. Currently, the target price of our major customers is only RMB118,000/t (USD7.9/lb V), so we prefer back-to-back trading, and would start offering after finishing the deliveries for concluded orders.” In view of the weak downstream demand, the producer predicted Chinese ammonium metavanadate prices would be weakly stable in the coming week.
With an annual production capacity of 2,400t for ammonium metavanadate, the producer expects to produce 170t in July, unchanged from June, and holds 30t of stocks now.
A major producer in South China notes she stopped offering for ammonium metavanadate, and will negotiate the price when receiving an order. She said, “We sold 30t of ammonium metavanadate 98%min at RMB125,000/t (USD8.4/lb V) Inc-VAT EXW D/P early this week. We did not make any concessions as the material the customer needs is not of the general specification, and he asked us to remove one of the elements in the material.” He added, “It is hard to conclude deals at RMB125,000/t (USD8.4/lb V) Inc-VAT EXW D/P, and we might get orders after reducing our price by RMB10,000/t (USD0.7/lb V). We learned from our customers that someone in Chongyang County, Hubei had signed bulk orders at RMB115,000/t (USD7.7/lb V).” In view of the great inventory pressure, the producer predicted Chinese ammonium metavanadate prices would be weakly stable in the coming week.
With an annual production capacity of 2,400t for ammonium metavanadate, the producer expects to produce 110t in July, unchanged from June, and holds 40t of stocks now.
www.asianmetal.com
