Chinese ferrovanadium prices down
2023-03-28 07:49:46 [Print]
BEIJING (Asian Metal) 28 Mar 23 - In view of the sufficient supply in spot market, Chinese ferrovanadium 50%min market mentality kept negative during the past week. At present, the mainstream prices of Chinese ferrovanadium 50%min stand at RMB142,000-144,000/t (USD41.6-42.2/kg V) delivered D/A 180 days, down by RMB2,000/t (USD0.6/kg V) from middle last week. Considering that more and more suppliers prefer to clear their inventory as soon as possible, insiders predict that the mainstream prices of Chinese ferrovanadium 50%min would edge down in the coming week.
"Buyers kept reluctant to purchase during the past week and we face huge inventory pressure now. According to the feedback of our major clients, we could at most sell at around RMB142,000/t (USD41.6/kg V) delivered D/P for the moment," said a producer in Northeast China. They just sold 10t of ferrovanadium 50% min at this price level late last week. However, they refused to sell at any prices below RMB145,000/t (USD42.5/kg V) just one week ago. Prices of vanadium pentoxide flake 98%min they inquired dropped from RMB136,000/t (USD9.1/lb V2O5) EXW D/P last week to the latest around RMB134,000/t (USD9.2/lb V2O5). In view of the dropping raw material prices, they expect that the mainstream prices of Chinese ferrovanadium 50%min would move down by at least RMB2,000/t (USD0.6/kg V) in the coming week.
With an annual production capacity of 3,600t, they produced about 500t in 2022 and about 100t in the first two months of 2023. They expect to produce about 50t this month, almost the same as last month. They have about 20t of stocks for the moment, up by about 20t MoM.
"Clients could easily find enough goods in spot market as too many suppliers want to clear their inventory as soon as possible. For firm bids, we could accept a discount of RMB2,000/t (USD0.6/kg V) now," said a producer in North China. They last sold 10t of ferrovanadium 50%min at RMB146,000/t (USD42.8/kg V) delivered D/A 180 days about one week ago and could accept RMB144,000/t (USD42.2/kg V) now. Considering that the sufficient supply in spot market continues, they expect that the mainstream prices of Chinese ferrovanadium 50%min would move down to around RMB140,000/t (USD41.0/kg V) in the following week.
With an annual production capacity of 1,500t, they produced about 700t in 2022 and about 200t so far this year. They expect to produce about 100t in March, almost the same as February, holding around 50t of inventories for the moment, unchanged MoM.
"Buyers kept reluctant to purchase during the past week and we face huge inventory pressure now. According to the feedback of our major clients, we could at most sell at around RMB142,000/t (USD41.6/kg V) delivered D/P for the moment," said a producer in Northeast China. They just sold 10t of ferrovanadium 50% min at this price level late last week. However, they refused to sell at any prices below RMB145,000/t (USD42.5/kg V) just one week ago. Prices of vanadium pentoxide flake 98%min they inquired dropped from RMB136,000/t (USD9.1/lb V2O5) EXW D/P last week to the latest around RMB134,000/t (USD9.2/lb V2O5). In view of the dropping raw material prices, they expect that the mainstream prices of Chinese ferrovanadium 50%min would move down by at least RMB2,000/t (USD0.6/kg V) in the coming week.
With an annual production capacity of 3,600t, they produced about 500t in 2022 and about 100t in the first two months of 2023. They expect to produce about 50t this month, almost the same as last month. They have about 20t of stocks for the moment, up by about 20t MoM.
"Clients could easily find enough goods in spot market as too many suppliers want to clear their inventory as soon as possible. For firm bids, we could accept a discount of RMB2,000/t (USD0.6/kg V) now," said a producer in North China. They last sold 10t of ferrovanadium 50%min at RMB146,000/t (USD42.8/kg V) delivered D/A 180 days about one week ago and could accept RMB144,000/t (USD42.2/kg V) now. Considering that the sufficient supply in spot market continues, they expect that the mainstream prices of Chinese ferrovanadium 50%min would move down to around RMB140,000/t (USD41.0/kg V) in the following week.
With an annual production capacity of 1,500t, they produced about 700t in 2022 and about 200t so far this year. They expect to produce about 100t in March, almost the same as February, holding around 50t of inventories for the moment, unchanged MoM.
