The Domestic Vanadium Market Is Deadlocked And The International Market Is Slightly Weak
www.ferroalloynet.com:After the centralized steel bidding, the market activity has decreased, but the vanadium market still has support in the short term with stable price. At present, the supply and demand of vanadium raw material end is relatively flat, and the market price is not very fluctuating. Although the ferrovanadium market is weak, it is difficult for ferrovanadium price to fall under the influence of manufacturers’ production suspension, inverted cost and strong raw materials. After the purchase of VN alloy end steel plants, the price is refferred by the bulk cargo market, but most manufacturers still have firm quotations. Short term V2O5 flake and VN alloy still play a supporting role in the market.
Recently, the domestic market prices of ammonium metavanadate and V2O5 flake have remained stable for a period of time. The price fluctuation of downstream alloys has not affected the upstream market. The market price of ammonium metavanadate remains at about 98000-100000 yuan / ton, and the quoted prices of some chemical manufacturers of metavanadate are higher than the cash price of 100000 yuan / ton. The spot quotation of V2O5 flake market is 105500 yuan / ton, and the transaction price is between 105000-105500 yuan / ton. In terms of signing orders by V2O5 flake large factories, Tranvic said that it had signed about 400 tons of orders in July, with high downstream acceptance. Desheng and Jianlong said that they were temporarily out of stock, not signing the order in July, and there were not many sources of goods in the bulk market. Although it was difficult to deal with high prices, it did not fall out of the current transaction price range.
At present, except for Pangang and Cheng Steel, all the ferrovanadium plants suspended the production. Jinzhou is one of the most centralized severe region. The market price of V2O5 flake is 102500-103500 yuan / ton, while the cash price of ferrovanadium steel is only 102500-103500 yuan / ton. In the short term, the price of V2O5 flake is still strong, which is likely to be higher. The manufacturers of VN alloy are still supporting the price. The mutual support between V2O5 flake and VN alloy is important to the current market stability. For the ferrovanadium plant, it is impossible for the manufacturers to reduce the cost of raw materials. The demand in July, including the steel bidding period, is not optimistic, and it is difficult to rely on the demand to support. As the later market, the price may rebound after the halt production, and the C2O5 flake price may decline during the weak demand period.
The centralized steel bidding in July was basically completed, and the main steel mills had already signed the bid. In the early stage of steel bidding, the effect of supporting the price by VN alloy manufacturers was obvious, and the price was increased. Then, low price appeared in the bidding participated by traders, which affected the manufacturers’ bidding sentiment. After that, the bidding price did not exceed 167000 yuan / ton by acceptance. At present, the prices of VN alloy plants are about 168000-170000 yuan / ton by cash and 172000-172000 yuan / ton by acceptance. While some manufacturers offer 164000-167000 yuan / ton by cash, the same with the bulk market. The market was relatively chaotic and the actual transactions were reduced.
On July 8th, the price of ferrovanadium fell to 22.7 – 23.5 USD/KgV, convert into 50# ferrovanadium RMB price was 79700- 82500 Yuan/ton. The price of European V2O5 fell to 5.1-5.5 USD/LB V2O5, convert into V2O5 98% RMB price was 77400-83400 Yuan/ton; the price of ferrovanadium in United States declined to 9.3-9.6 USD/LB V, convert into 50# ferrovanadium RMB price was 72,000-74,300 Yuan/ton.
In terms of the international market, the spread of COVID-19 is still affecting the demand of the international market. Enterprises stopped work. At present, Russia, South Africa, Brazil, South Korea, Japan, Southeast Asia and the Middle East all intend to flow to the Chinese market. With the continuous weakness of the international market, the price difference between international and domestic vanadium has increased, and it is only recently that the number of traders who want to import vanadium products increased, and the import resources are expected to increase in the later market.
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