BEIJING (Asian Metal) 16 May 19 – According to a source, Shuangyashan Xinsha Environmental Protection Co., Ltd., which has been out of production for nearly two years, plans to resume production of vanadium pentoxide in mid-August, with an estimated annual capacity of 1,300t.

“Our company purchases waste vanadium tailings from Heilongjiang Jianlong Iron and Steel Group (hereinafter referred to as “Jianlong”) as the raw material to produce vanadium pentoxide. But we have been out of production since June 2017, mainly because of the production suspension of Jianlong. Jianlong has resumed production for half a year, and we are also actively preparing for the production resumption, which might be as early as mid-August,” said a source from the company. Jianlong resumed vanadium pentoxide production late last year, and only sold to Chengde Jianlong. The by-product, vanadium tailings in the second refining, will be used as the raw material of Xinsha Enviromental Protection.

Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min are RMB131,000-134,000/t (USD19,052-19,488/t) EXW D/A six months, down by RMB16,000/t (USD2,327/t) from last week. Due to weak downstream demand, most vanadium pentoxide flake producers bear great inventory pressure. According to the purchase prices of vanadium products from steel mills, mainstream prices for Chinese vanadium pentoxide flake 98%min are expected to drop to RMB120,000/t (USD17,452/t) in the coming week.

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