Ferro-vanadium prices skyrocketing in China
2005-03-25 09:09:57 【Print】
BEIJING (Asian Metal) 25 Mar 05 - Following the continued firmness in the international market, vanadium prices in China also jumped up again in the past two weeks.
"On March 12, we sold a batch of ferro-vanadium in Rotterdam warehouse at a price of USD75/kg to a Japanese trader. But now the price has already climbed to over USD100/kg, at least a one-third increase," a ferro-vanadium smelter in North China told Asian Metal. According to the source, the current export price for ferro-vanadium 80%min should be at around USD100/kg FOB CMP for any business concluded recently.
"The domestic market is really tight,” said the source. “It’s very difficult for us to purchase raw materials -- vanadium pentoxide -- the price of which has already skyrocketed to RMB370,000-380,000/t," said the source.
Although the smelter has production capacity of 1,200tpy, it can only keep a monthly output of 10-20t at present.
"We quote RMB450,000/t for ferro-vanadium 50%, but shouldn’t have to accept less than RMB430,000. What's more, we believe the price will soon reach level," the source said.
The source purchases vanadium pentoxide for RMB380,000/t. The treatment charge is around RMB18,000/t. Profits are expected to be RMB30,000/t, so the smelter insists on charging at least RMB430,000/t.
According to the source, domestic steel mills purchased lots of ferro-vanadium last week, when prices were in a range of RMB360,000-380,000/t. "Some large steel mills even sent people to visit us for some feedback on ferro-vanadium. It was quite unusual. It means that the market is really in a serious shortage for the material," the source said.
The source predicted that the price of ferro-vanadium would continue to rise to a level of RMB500,000/t for 50%min and USD130/kg for 80%min.
