South Korean Ferrovanadium Market Sees Weak Demand
BEIJING (Asian Metal) 20 Feb 20 – As the market demand keeps soft, prices of South Korean ferrovanadium touch the peak and start to drop again. Currently, mainstream prices for South Korean ferrovanadium 80%min stand at USD29-30/kg V EXW D/P, down by USD1/kg V from last week. Consumers only make purchase according to urgent need and inquiries are hard to see at the moment. Insiders believe that prices of South Korean ferrovanadium would drop slightly in the coming week.
A consumer in South Korea noted the current prices for ferrovanadium 80%min in spot market he received stand at USD29.5/kg V EXW D/P, down by USD1.5/kg V from last week. “We only buy from domestic market and our last deal was made this Monday, when we bought 25t at USD28/kg V. This price belongs to a part of long-term contract. If we buy from spot market, we can close deal at no more than USD29.5/kg V now,” said the source. He added, “Though suppliers try to increase their quotaiton due to the tight supply reason, we can get enough goods easily from our regular supplier.” He believes that prices of South Korean ferrovanadium 80%min would drop by USD1/kg V in the coming week.
With an annual consumption capacity of 360t, they consumed 300t in 2019 and have consumed 40t so far this year. They expect to consume 25t in February, unchanged from January, holding 30t of stocks now, up by 10t from last month.
A trader in South Korea claimed the current price for ferrovanadium 80%min he received stands at USD30/kg V EXW D/P and they can accept USD29.5/kg V for firm bids, down by USD1/kg V from last week. “It’s no meaning to insist on high prices as inquiries are rare to see. Our last deal was made this Tuesday, when we sold 40t at USD29.5/kg V,” said the source. He added, “We tried to sell at USD30.5/kg V last week but didn’t close any deal.” Considering few consumers would like to follow up, he believes that prices of South Korean ferrovanadium 80%min would drop to USD29/kg V in spot market in th coming week.
With a regular trading volume of 40tpm, they sold 400t in 2019 and have sold 60t so far this year. They expect to sell 40t in February, unchanged from January. They have no stocks now, down by 20t from last month.
www.asianmetal.com
