Vanadium Market Overall Strengthened This Week This week, most of the products in the upstream and downstream of vanadium market are in a strong trend. According to the application areas of vanadium, the prices of various products in metallurgy have risen to varying degrees, and it is difficult to boost the price of chemical industry with weak demand. This week, the raw materials remained tight, which stimulated the price rise of raw materials. The sales of downstream VN alloy were good, and the price rise also improved the acceptance of raw materials by manufacturers. At present, the overall market performance is: hard to find raw materials in spot market, and the price of alloys rose steadily.
1. The shortage of V2O5 flake will continue
Up to now, the market price of V2O5 flake 98% is 97,000-97,500 Yuan/ton in cash. There are many alloy factories asking for goods at this price. Suppliers who have stocks see a rise in the price of V2O5 flakes, and offer 98,000-100,000 Yuan/ton in cash. At the same time, ammonium metavanadate and ammonium polyvanadate for metallurgy are sold to 93,000 Yuan/ton in cash. Ammonium metavanadate for chemical industry is mainly sold at 95,000 Yuan/ton. The price of chemical grade V2O5 powder is unchangeable, and the recovery of chemical products industry is slower than that of metallurgy industry.
2. A breakthrough in the bidding price of VN alloy
Yesterday, the bidding price of Nanjing Steel was 154,000 Yuan/ton by acceptance including the bidding service fee. Except the bidding service fee, it was about 152,500 Yuan/ton by acceptance. The bidding price of Shaoguan Steel was 154,000 Yuan/ton by acceptance. Compared with the previous mainstream bidding price of 152,000 Yuan/ton, the current bidding price broke through. Yesterday, Shougang Changzhi issued a bid to purchase 20 tons, with the price to be determined. ZENITH purchased 180 tons, and is expected to issue the bidding price today. According to the law of steel plant procurement, the end of the month and the beginning of the month are centralized procurement stage, but the vanadium market has been in the rising stage so far this month. Some steel plants choose to purchase in advance, which shows that the steel plants are also bullish towards the vanadium market. Affected by the shortage of raw materials and the rising price, the future market of VN alloy is indeed likely to continue to rise.
3. The output if some vanadium enterprises is expected to increase and the inventory will decline
Near the end of the month, it is expected that the operation and production of ammonium metavanadate and VN alloy will increase compared with that of last month. In terms of ammonium metavanadate, Hunan Chuangda recovered more than half of its production this month, and other enterprises basically maintained normal production. Since the recovery of VN alloy price this month, the manufacturers’ enthusiasm for production has increased. Most of the manufacturers that stopped production during the period of price inversion in the early stage have resumed production, and the manufacturers sign the orders densely, and the production is also expected to increase. Last month, ferrovanadium manufacturers in Jinzhou basically resumed production. This month, due to the lack of molten iron in the blast furnace, the ferrovanadium production of Pangang slowed down, which is expected to affect a small part of the production. This month, V2O5 flake manufacturers produce normally. A new VN alloy production line of Jianlong in Heilongjiang was put into production this month, which is expected to affect the volume of V2O5 flake sold out by Jianlong.
When the supply is improved and sufficient, there is still a shortage of raw materials in the market. There are two reasons: first, alloy enterprises are bullish and prepare raw materials in advance. Most VN alloy factories have signed orders for June, in case of lack of raw materials, they have prepared raw materials in advance, then the price of V2O5 flake increased in the last ten days of May; second, small factories are looking forward to further rise and reluctant to sell, and traders try to stock up. As a result, the inventory of VN plants at the end of the month will be significantly reduced compared with that of last month, which is positive for the market in a short term.