BEIJING (Asian Metal) 14 May 19 – According to a source, Hunan Xinhongda Vanadium Industry Co., Ltd. halted production of its ammonium metavanadate production line on 1 May to conduct facility maintenance due to weak demand for the material. It’s predicted that the maintenance will last one month with reduced production capacity of 100tpm and reduced output of 70tpm.

“”Prices for ammonium metavanadate keep dropping now, so most consumers postpone making purchases. Against this background, we shut down the production line and arranged one-month maintenance. We expect to resume production in early June,” a source from the company said. The company sees sharp decrease in profit as some buyers want to buy ammonium metavanadate 98%min at a price slightly higher than about RMB110,000/t (USD16,026/t), which is the company’s production cost.

With an annual production capacity of 1,200t of ammonium metavanadate 98%min, the company produced 800t in 2018 and 70t in April 2019, stable MOM. Having signed orders for all stocks of ammonium metavanadate 98%min, it just holds about 10t of ammonium metavanadate 99.5%min in stock at present.

According to Asian Metal, mainstream prices for Chinese ammonium metavanadate 98%min are RMB130,000-133,000/t (USD18,940-19,377/t) Inc-VAT EXW D/P now, down by RMB7,000/t (USD1,020/t) from last week. Due to panic, some suppliers concluded small deals at RMB125,000/t (USD18,211/t). Seeing no sign of better demand, market participants predicted that Chinese ammonium metavanadate prices would continue to go down under pressure in the coming week.