Ferrovanadium price to touch bottom
2005-07-06 10:08:34 【Print】
BEIJING (Asian metal) 6 Jul 05 - Chinese ferrovanadium markets have kept falling recently, with current prices around RMB260,000-270,000/t, a price which tends to reach the bottom line, major sources reported.
A Liaoning-based ferrovanadium producer sold 20t of FeV 50% for RMB270,000/t to steel mills yesterday morning, with RMB265,000/t also workable.
The FeV price keeps dropping recently, and the producer believes current FeV prices are close to production cost and will not drop further.
FeV buyers have begun to come back to the market recently. "We’ve received more orders from steel mills since last week," said the producer.
Meanwhile, if the FeV price reaches around RMB250,000/t, many small FeV producers will have to quit from the market due to no profit.
According to the source, the FeV price drops every n May and June. "But I think the price will rebound in August," said the producer.
The producer hasn’t made any international deals recently. “We quoted usd78/kg for ferrovanadium 50% last weekend, but didn’t received any inquiries,” said the producer. “The price dropped so drastically, and we heard current prices were around USD71/kg.”
The company wants to produce FeV 80%, but the high-quality vanadium pentoxide supply is very tight due to major producers exporting their products to foreign markets at higher prices, leaving low-quality materials to be sold in Chinese domestic markets.
Meanwhile, due to the dropping vanadium price in China, many vanadium pentoxide producers export their products to foreign markets.
Another Liaoning-based smelter exports vanadium pentoxide to foreign markets, with current prices around USD15/lb. "We can reduce the price by USD0.2-0.3/lb if payment is made in advance, though that is our bottom line," said the producer, adding that the foreign market is better than the domestic market.
However, a Fuzhou-based producer sold a batch of vanadium pentoxide for around USD18/lb FOB CMP. “Foreign demand is quite strong,” said the producer. “We haven’t sold in China recently.”
The producer produces about 10tpm of vanadium pentoxide, at present.
A Liaoning-based ferrovanadium producer sold 20t of FeV 50% for RMB270,000/t to steel mills yesterday morning, with RMB265,000/t also workable.
The FeV price keeps dropping recently, and the producer believes current FeV prices are close to production cost and will not drop further.
FeV buyers have begun to come back to the market recently. "We’ve received more orders from steel mills since last week," said the producer.
Meanwhile, if the FeV price reaches around RMB250,000/t, many small FeV producers will have to quit from the market due to no profit.
According to the source, the FeV price drops every n May and June. "But I think the price will rebound in August," said the producer.
The producer hasn’t made any international deals recently. “We quoted usd78/kg for ferrovanadium 50% last weekend, but didn’t received any inquiries,” said the producer. “The price dropped so drastically, and we heard current prices were around USD71/kg.”
The company wants to produce FeV 80%, but the high-quality vanadium pentoxide supply is very tight due to major producers exporting their products to foreign markets at higher prices, leaving low-quality materials to be sold in Chinese domestic markets.
Meanwhile, due to the dropping vanadium price in China, many vanadium pentoxide producers export their products to foreign markets.
Another Liaoning-based smelter exports vanadium pentoxide to foreign markets, with current prices around USD15/lb. "We can reduce the price by USD0.2-0.3/lb if payment is made in advance, though that is our bottom line," said the producer, adding that the foreign market is better than the domestic market.
However, a Fuzhou-based producer sold a batch of vanadium pentoxide for around USD18/lb FOB CMP. “Foreign demand is quite strong,” said the producer. “We haven’t sold in China recently.”
The producer produces about 10tpm of vanadium pentoxide, at present.
