Vanadium Raw Material Price Slows Down; Alloy Market Remains To Be Supported By Demand In recent days, with the quotation of bulk V2O5 flake approaching the price of large factories step by step, the pace of market downturn has slowed down significantly. It is difficult to trade with the large price difference of quotation and purchase. FeV and VN alloy manufacturers are facing the stage of weak demand in the middle of the month, but there is not much profit space for FeV itself to decline further. There is still pressure on VN alloy in the short term due to the impact from bulk market. In terms of terminal, since the beginning of this month, the South area of China has entered the flood season, with frequent floods in many places. The demand for steel product has weakened due to the weather, and the demand for alloy market is facing challenges.
Up to now, the quotation of V2O5 flake in bulk market is 106,000-107,000 Yuan/ton, and the counteroffer of buyers is 105,000-106,000 Yuan/ton. The price difference is not large. There is a small amount of transaction can be made at the price of 106,000 Yuan/ton, while the spot price of about 107,000 Yuan/ton is difficult to deal with. The price accepted by the buyer for risk aversion is consistent with the quotation of large factories, so the price of V2O5 flake in bulk market is slowing down at present. In terms of large factories, Chengde Jianlong said that they have signed out 8 vehicles of V2O5 flakes with the price of 107,000 Yuan/ton. Desheng signed a small number of orders, while Tranvic said that there is no spot goods for signing. Due to the small delivery volume of large factories, there is no lack of purchase in the V2O5 flake market. It is expected to slightly adjust to about 105,000-106,000 Yuan/ton in the later stage.
Yesterday, the bidding price of FeV from Nanjing Steel was 107,900 Yuan/ton by acceptance with tax and bidding service fee. Except the bidding service fee, the price was about 105,000 Yuan/ton in cash, which was lower than the current price of V2O5 flake. The manufacturers said that the selling price was mainly 108,000 Yuan/ton, and the selling price of some traders in bulk market was 106,000 Yuan/ton. During the period of price decline, FeV was always passive and faced the risk of hanging upside down.
Yesterday, the bidding price of VN alloy from Nanjing Steel was 166,800 Yuan/ton by acceptance with tax and bidding service fee. Except the bidding service fee, the price was about 163,000 Yuan/ton in cash, which was actually a low price in the market. The bidding price of Benxi Steel was 167,000 Yuan/ton by acceptance, slightly higher and basically consistent with the market price of bulk goods. At present, the quotation of bulk goods is 164,000-165,000 Yuan/ton in cash, because the manufacturers signed long-term orders last month, and some of the spot goods have been signed to traders. Since this month, the supply of goods from traders has increased, and the market has been active, and the profit margin is considerable. In order to promote the transaction, there is no lack of selling at a low price.
According to the monitoring of the water conservancy department, China has entered the flood season in an all-round way. As of last Friday, the flood disaster has caused 5.8 million people in 22 provinces (districts and cities) including Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Guizhou, etc., 39 people died and disappeared, 403,000 people were transferred and resettled urgently, more than 5200 houses collapsed, and the direct economic loss was 14.92 billion Yuan. The traffic and logistics in many places were paralyzed, and the construction site project was postponed. And the material supply was blocked, the terminal demand for steel product began to weaken under the influence of the weather, and the speed of de stocking slowed down. The transaction volume also fell down, and the price of rebar began to turn down, and then the steel market entered a seasonal cold period.