South Korean Ferrovanadium Prices Drop
BEIJING (Asian Metal) 19 Jun 20 – Currently, mainstream prices of South Korean ferrovanadium 80%min stand at USD24.2-24.7/kg V in port of Busan, down by USD0.3/kg V from early last week. Inquiries from end consumers stay quiet and most suppliers face high sales pressure at the moment. Considering the whole market sentiment keeps weak, insiders believe that mainstream prices of South Korean ferrovanadium 80%min would edge down in the coming week.
“We drop our bottom price for ferrovanadium 80%min by USD0.3/kg V from last week to USD24.7/kg V in port of Busan now but still few buyers would like to purchase,” a trader in South Korea claimed. In order to speed up the repatriation of funds, they would like to accept USD24.6/kg V for firm bids more than 20t. They would not accept any orders below this price level now. Considering inquiries from end consumers keep rare, he believes that mainstream prices of South Korean ferrovanadium 80%min would keep weak in the coming week.
With a regular trading volume of 40tpm, they sold about 40t in May and have not closed deal so far this month, holding about 20t of regular stocks now, unchanged from last month.
“I sent inquiries early last week and received the quotation for ferrovanadium 80%min stand at around USD25/kg V in port of Busan. We delay the purchase to early this week and closed deal for 25t at USD24.5/kg V,” a consumer in South Korea said. They only buy according to urgent need and won’t consider building stock in advance in the coming month as market prices have no rebounding signal. Considering the supply situation in spot market stays loose, he believes that mainstream prices of South Korean ferrovanadium 80%min would keep steady in the coming week.
With a consumption capacity of 360tpy, they consumed about 300t in 2019 and about 125t in the first five months this year. They expect to consume about 25t in June, unchanged from May. They would hold about one month’s demand as safety stocks, the same as last month.
www.asianmetal.com
