Xiantan Steel Fails To Bid For Vanadium Nitride

BEIJING (Asian Metal) 9 Jul 20 – Hunan Valin Xiangtan Iron & Steel Co., Ltd. invited bids on 7 July to purchase 20t of vanadium nitride but failed at last due to the rebounding tendency of market prices.

“Suppliers ask for at least RMB168,000/t (USD31.1/kg V) delivered D/A 180 days or would not accept any orders. However, we just want to buy at no more than RMB166,000/t (USD30.7/kg V), so we failed to buy this time,” a source from this company said. He received the current price for vanadium pentoxide flake 98%min at RMB105,500/t (USD7.0/lb V2O5) EXW D/P. According to the cost, prices of vanadium nitride stand at no more than RMB165,000/t (USD30.6/kg V). So they refuse to buy vanadium nitride at much more than this price level. They mainly consume the history stocks now, which can support to the end of this month.

Located in Xiangtan, Hunan, this company could consume about 60tpm of vanadium nitride in normal. They purchased about 720t in 2019 and about 190t so far this year. They expect to consume 60t in July, unchanged from June, holding about 40t of stocks now, down by 20t from last month.

Currently, mainstream prices of Chinese vanadium nitride stand at RMB165,000-168,000/t (USD30.6-31.1/kg V) EXW D/A 180 days, up by RMB1,000/t (USD0.2/kg V) from this Tuesday. Supported by the high cost, most suppliers try to increase to quotation to guarantee their basic profit but steel mills follow up slowly.