BEIJING (Asian Metal) 21 May 19 – Mainstream prices for Chinese ammonium metavanadate 98%min stand at RMB115,000-118,000/t (USD7.7-7.9/Ib V) Inc-VAT EXW D/P at present, down by RMB9,000/t (USD0.6/Ib V) from last week. As the demand of vanadium products in downstream market is weak, the transactions remain limited. At the same time, as prices continue to fall, most producers have reduced or even suspended production. Supply and demand of Chinese ammonium metavanadate are both weak in the market. It is predicted that Chinese ammonium metavanadate prices would remain under pressure in the coming week.

A producer in South China noted that they quote ammonium metavanadate 98%min at RMB120,000/t (USD8.0/Ib V) Inc-VAT EXW D/P now and claim their lowest price is RMB118,000/t (USD7.9/Ib V) for firm bids, down by RMB7,000/t (USD0.5/Ib V) from last week. He said, “Nowadays, with few customers purchasing, our output has been reduced by nearly half due to insufficient orders. If a buyer is willing to purchase for firm basis, we can offer a discount of RMB2,000/t (USD0.1/Ib V) on the basis of the current quotation.” He last sold 10t of ammonium metavanadate 98%min at RMB125,000/t (USD8.4/Ib V) late last week. In view of the weak demand in the market, he predicted that Chinese ammonium metavanadate prices would be under pressure and go down in the coming week.

With an annual production capacity of 720t of ammonium metavanadate, the producer expects to produce 30t in May, down by 30t from April, holding 15t of stocks now.

A consumer in South China noted the lowest quotation of ammonium metavanadate 98%min he received is RMB115,000/t (USD7.7/Ib V) Inc-VAT EXW D/P now, down by RMB10,000/t (USD0.7/Ib V) from last week. He said, “I have contacted several suppliers of ammonium metavanadate who are eager to sell the product. I believe the price would further reduce by about RMB2,000/t (USD0.1/Ib V) in the coming week. So we are going to wait and see for a while to confirm the purchase plan.” He last purchased 20t of ammonium metavanadate 98%min at RMB145,000/t (USD9.7/Ib V) early this month.

With an annual consumption capacity of 600t for ammonium metavanadate, the consumer expects to consume 40t in May, unchanged from April, holding 20t of stocks now.