Xinhongda Vanadium Puts Off Ammonium Metavanadate Reproduction

BEIJING (Asian Metal) 20 Jun 19 – Suspending production on May 1 for equipment maintenance, Hunan Xinhongda Vanadium Co., Ltd. originally planned to resume production in early June. But as downstream demand is weak and prices stay unchanged, the company has decided to put off its reproduction to mid-July.

“Having our own vanadium mine, we have no problem with raw material supply. But at present downstream demand is weak, so we plan to wait on the sidelines for some time and then resume ammonium metavanadate production on July 15, about one and half months later than what we have originally planned,” a source from the company said. “At present, there is only one of our subsidiary companies, Hunan Sanfeng Vanadium Co., Ltd., still supplying high-purity ammonium metavanadate 99.5%min as normal, and we won’t accept orders on industrial grade ammonium metavanadate until after mid-July,” the source added.

With an annual production capacity of 1,200t of ammonium metavanadate 98%min, the company produced 800t in 2018 and maintained an average monthly output of about 70t before suspending production. Its stocks have already been sold out now.

Currently, mainstream prices for Chinese ammonium metavanadate 98%min stay at RMB123,000-126,000/t (USD17,827-18,262/t) Inc-VAT EXW D/P, unchanged from yesterday. Owing to weak downstream demand, it’s difficult for ammonium metavanadate prices to rebound. Most market players just wait on the sidelines, believing that prices for Chinese ammonium metavanadate would remain unchanged in the coming week.