Zhongyuan Special Steel To Invite Bids For Ferrovanadium

BEIJING (Asian Metal) 8 Jul 20 – Zhongyuan Special Steel Group Co., ltd plans to buy 20t of ferrovanadium 50%min this Friday and their target price stand at around RMB106,000/t (USD30.2/kg V) delivered D/P.

“We mainly consume the history inventory now and need to replenish stocks of raw material ferrovanadium 50%min this Friday at no more than RMB106,000/t (USD30.2/kg V) delivered D/P,” a source of this company said. Their last deal was made late May, when they bought 20t at RMB99,500/t (USD28.3/kg V) and another 10t at RMB100,000/t (USD28.5/kg V). He received the current quotation at RMB110,000/t (USD31.3/kg V) from producers and RMB106,000/t (USD30.2/kg V) from traders.

Located in Jiyuan, Henan, they could consume about 30t of ferrovanadium 50%min in normal. They consumed about 300t in 2019 and about 120t in the first half of this year. They expect to consume 20t in July, down by 5t from June, holding less than 10t now, down by 20t from last month.

Currently, mainstream prices of ferrovanadium 50%min stand at RMB106,000-108,000/t (USD30.2-30.7/kg V) delivered D/A 180 days at the moment, unchanged from last week. Though the production cost stands firm, due to the impact for low prices of ferrovanadium, prices of Chinese ferrovanadium 50%min would hardly rebound.