Tight Supply Of Raw Materials With Good Demand

www.ferroalloynet.com: At present, the domestic vanadium market is generally stable and consolidated, and there is no breakthrough increase in price due to short-term purchase reduction before bidding at the end of this month. However, there are still a variety of advantages such as shortage of raw materials, strong demand of downstream steel plants, and continuous improvement of steel products. It is expected that the later market price is likely to continue to climb up. Next week will be an important stage for centralized release of short-term demand, and the overall market is going to be positive.
1. Lack of spot goods of V2O5 flakes
Just entered the late May, it is hard to find more V2O5 flakes, small manufacturers arrange orders closely, and the mentality of being reluctant to sell is strong. It is less than two weeks before the next round of pricing and sales. In this period, the price of bulk V2O5 flakes will continue to rise. Affected by the shortage of V2O5 flake, downstream alloy manufacturers dare not sign futures orders without purchasing raw materials. The quotation of metallurgical grade ammonium metavanadate and ammonium polyvanadate in the market is raised to 93,000 Yuan/ton in cash, while the quotation of bulk V2O5 flake is rare. The manufacturer’s inquiry price is about 96,000 Yuan/ton in cash.
2. VN alloy bidding price is stable temporarily
At present, the market price of VN alloy is mainly at 150,000-152,000 Yuan/ton in cash. Yesterday, the bidding price of Anhui Zhangjiang Steel was 152,000 Yuan/ton by acceptance, which was not a breakthrough in the high-level transaction. However, there was a rare cash price of 149,000 Yuan/ton in the market yesterday, which has basically been completed. Until today, it is difficult to inquire about this price, and the quotation of traders is basically no less than 150,000 Yuan/ton in cash, the same level with manufacturers. The rise of low price quotation and the reduction of low price supply are conducive to the further increase of VN alloy price in the later market. In terms of manufacturers, the manufacturers with raw materials sign futures orders in the planned profit space, while the manufacturers without sufficient raw materials only signed the order until early June, and waiting for the V2O5 flake quotation of large factories. A small number of manufacturers who have spot inventory are reluctant to sell. and their quotation gradually increased, and the inventory fluctuation is not obvious. As a whole, the long-term signing of the manufacturers may cause the later spot flow to gradually shrink, and next week will enter the stage of centralized bidding, and the inquiries from steel mills and traders will increase, then the price of VN alloy has further opportunities to rise.
3. With the two sessions approaching, rebar generally bullish due to the environmental protection and production restriction
Since this week, the price of rebar continues to keep rising, the demand from downstream infrastructure is still strong, the demand from real estate has also improved significantly, and the output of rebar continues
to rise. When the electric furnace plant in Central China returns to work, the steel plant’s active production will inevitably increase the purchase of corresponding alloys. At the same time, the proximity of the two conferences will also increase the intensity of environmental protection production restriction. More environmental protection management and control will be implemented in the surrounding areas of Beijing, Tianjin and Hebei, which drives the market mentality to be bullish, rebar market is worth looking forward to.