The Domestic Vanadium Market Continued To Decline At The Beginning Of The Week
www.ferroalloynet.com: At the beginning of this week, compared with last Friday’s quotation in domestic vanadium market, there was a slight drop again. In addition to the temporary stability of vanadium, the prices of ammonium metavanadate, ferrovanadium and VN alloy continued to be weak. Some VN alloy manufacturers were still delivering previous orders signed with high price, and active in purchasing raw materials, but the quotation of newly signed futures orders was low. Before the Dragon Boat Festival, the terminal procurement was not active, and it is expected that the market will be in a weak atmosphere in the short term.
Recently, most of the transactions in the market are metallurgical grade ammonium metavanadate. The ferrovanadium and VN alloy plants purchase metallurgical grade ammonium metavanadate at a price of about 98,000-99,000 Yuan/ton. While the purchases for chemical grade is less, the sales of chemical V2O5 powder is not smooth, and the transaction price of some chemical grade ammonium metavanadate is about 100,000-102,000 Yuan/ton. Before the COVID-19 epidemic, the price of chemical grade ammonium metavanadate is mostly high, even higher than the price of V2O5 flake, but since the outbreak of the epidemic this year, downstream chemical enterprises have suffered serious damage, and the export market has been hit, causing the price of vanadium products in the chemical industry to be depressed.
It is learned from some VN alloy manufacturers that the actual transaction price of V2O5 flake in the market remains at about 105,000-106,000 Yuan/ton, and the alloy factory has a high purchase intention for V2O5 flake with the price of 105,000-105,500 Yuan/ton, which is equivalent to the price quoted by large factories. The quotation of bulk goods is mainly at 106,000 Yuan/ton, but the downstream buyers are not willing to accept such price. The later market is expected to be stable for a period of time.
There is a large gap between the price of ferrovanadium in bulk market and that of manufacturers, among which the price of manufacturers is high, at a cash price of about 107,000-108,000 Yuan/ton in cash, and the orders are mainly from old customers, but the actual signing volume has declined, and the downstream purchase willingness has decreased. Some ferrovanadium factories in Jinzhou region have the intention to stop production and reduce production, and some manufacturers have the intention to sell at 108,000-109,000 Yuan/ton by acceptance. The price of FeV in bulk market is mostly at 106,000 Yuan/ton in cash, while traders say the transaction is less, and some cargo holders still have room for negotiation.
As the bidding of steel plants has not started yet, terminal procurement is less, and bulk market is active. Currently, not only bulk market quote with low price, but also some manufacturers offer at 157,000-158,000 Yuan/ton in cash, which is equivalent to the quotation in bulk market. The transaction price of direct supply to steel plants is slightly higher at 159,000-160,000 Yuan/ton, and there are not many purchases in the market. It is difficult for traders to receive orders from small steel mills, so the market is relatively weak. Under the pessimistic market mentality, the weak atmosphere in vanadium market will continue, and most manufacturers are waiting for the bidding at the end of this month and the beginning of next month.
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