www.ferroalloynet.com: Recently, the market trend of vanadium-nitrogen alloy tends to be stable, and the market transaction cash price is about 145,000-146,000 Yuan / ton. There is a certain price difference between large-scale V2O5 flake factories and V2O5 flake in bulk market. Until the end of December, the V2O5 flake price of large-scale factories remains unchanged at 96,000 Yuan / ton by acceptance, while the price in bulk market is between 93,000-93,500 yuan / ton in cash. Therefore, vanadium-nitrogen plants prefer to purchase from bulk market, but the cost of producing VN alloy is still high. Calculated based on the average price of 93,250 yuan / ton in bulk market, the specific cost of VN alloy is as follows:

 Unit(Yuan/ton)QuantityUnit cost(Yuan)Remarks
V2O5 flake932501.42 ton132,415Ex-factory Price with Tax
Processing cost  12000-15000 
Cargo in drum45 Yuan/barrel10 barrel450 
Equipment maintenance cost  2000 
Transportation cost  450 
Total amount  147,315-150,315 

As mentioned above, if buy V2O5 flake from bulk market with the average price of 93250 Yuan / ton, the production cost of vanadium-nitrogen plant is between 147,315-150,315 Yuan / ton, and the equipment maintenance cost of some manufacturers is slightly lower, so the minimum cost is about 146,000 Yuan / ton, so compared with the current cash price of 145,000-146,000 Yuan / ton of VN alloy, vanadium-nitrogen manufacturers bear greater pressure. If it is calculated based on the acceptance price of 96000 yuan / ton of large-scale vanadium plants, the production cost of VN alloy is about 151,000-154,000 Yuan/ ton, but the main bidding price of steel plant is about 148,000 yuan / ton at present, which is far away from this cost price. Therefore, the V2O5 flake of large-scale factories is faced with the problem of signing for sale; the downstream alloy plants have low acceptance intention, and some clients who signed long-term agreement produced with loss.

According to the current bidding situation of steel plants, the price of VN alloy shows a strong trend, but it is under pressure of steel plants, so there is limited space to increase for future market, and the V2O5 flake market also has a slight recovery trend. It is difficult for VN alloy manufacturers to get rid of the dilemma of high cost production and low price sales in a short period of time.