Indian ferrovanadium prices continue to slide on weak demand
2015-10-20 08:51:08 [Print]
BEIJING (Asian Metal) 20 Oct 15 - According to sources, weak end-user demand continues to impact on Indian ferrovanadium 50%min prices as deals are now being concluded at INR490-520/kg (USD15
A domestic converter of ferrovanadium 50%min with monthly output at 15-20t lamented continuing softening prices although all its output is delivered to long-term customers. “Overall it is not a good situation because prices are continually softening,” remarked the source revealing that whilst the company sold material in the past week at up to INR550/kg (USD17.0/kg V) ex works with 30-day payment term, the highest the company could possibly achieve this week is INR520/kg (USD16.0/kg V) ex works.
A ferrovanadium 50%min trader with 5-8t in monthly sales confirmed the softening prices and stated that activity in Mumbai area is very competitive with many aggressive offers from traders at INR490-495/kg (USD15.1-15.3/kg V) ex warehouse. “There are many sellers right now and fierce competition is leading to cut-throat offers,” observed the source whose only less than 1t-deal was concluded last week at INR500/kg (USD15.4/kg V) ex warehouse but feared price could drop as low as INR470/kg (USD14.5/kg V) ex warehouse before the close of business for the week, all things being equal.
Agreeing to the above is a domestic converter who confirmed receiving new vanadium sludge offer, but did not proceed to negotiate or buy because the company is sitting on enough inventory, at INR275-305/kg (USD2.28-2.47/lb V2o5) ex works, down from last week’s level at INR330-350/kg (USD2 . 63-2.76/lb V2o5) ex works.
According to the end-user, aluminum producers were forced to reduce vanadium sludge prices because of competitive prices of imported vanadium pentoxide which is now stable and being quoted at USD2.70/lb CIF Nhava Sheva and thinks more domestic converters will go for the former in order to be able to achieve reasonable margins on conversion activity due to expected lower production cost.
Exchange rate: INR64.8:$1
. 1-16.0/kg V) ex warehouse, down by INR45.0/kg (USD1.39/kg V) ex warehouse in the last 5 days.A domestic converter of ferrovanadium 50%min with monthly output at 15-20t lamented continuing softening prices although all its output is delivered to long-term customers. “Overall it is not a good situation because prices are continually softening,” remarked the source revealing that whilst the company sold material in the past week at up to INR550/kg (USD17.0/kg V) ex works with 30-day payment term, the highest the company could possibly achieve this week is INR520/kg (USD16.0/kg V) ex works.
A ferrovanadium 50%min trader with 5-8t in monthly sales confirmed the softening prices and stated that activity in Mumbai area is very competitive with many aggressive offers from traders at INR490-495/kg (USD15.1-15.3/kg V) ex warehouse. “There are many sellers right now and fierce competition is leading to cut-throat offers,” observed the source whose only less than 1t-deal was concluded last week at INR500/kg (USD15.4/kg V) ex warehouse but feared price could drop as low as INR470/kg (USD14.5/kg V) ex warehouse before the close of business for the week, all things being equal.
Agreeing to the above is a domestic converter who confirmed receiving new vanadium sludge offer, but did not proceed to negotiate or buy because the company is sitting on enough inventory, at INR275-305/kg (USD2.28-2.47/lb V2o5) ex works, down from last week’s level at INR330-350/kg (USD2 . 63-2.76/lb V2o5) ex works.
According to the end-user, aluminum producers were forced to reduce vanadium sludge prices because of competitive prices of imported vanadium pentoxide which is now stable and being quoted at USD2.70/lb CIF Nhava Sheva and thinks more domestic converters will go for the former in order to be able to achieve reasonable margins on conversion activity due to expected lower production cost.
Exchange rate: INR64.8:$1