Chinese ferrovanadium prices move down
2023-04-11 07:43:24 [Print]
BEIJING (Asian Metal) 11 Apr 23 - As the sufficient supply continues, Chinese ferrovanadium market mentality keeps weak over the past week. At present, the mainstream prices of Chinese ferrovanadium 50%min stand at RMB132,000-134,000/t (USD38.7-39.3/kg V) delivered D/A 180 days, down by RMB2,000/t (USD0.6/kg V) from late last week. Considering that inquiries in spot market stay rare and too many suppliers face huge inventory pressure for the moment, insiders predict that the mainstream prices of Chinese ferrovanadium 50%min would drop further in the coming week.
"Buyers only want to buy at no more than RMB132,000/t (USD38.7/kg V) delivered D/A 180 days for the moment and we could hardly maintain our price firm as we need to guarantee our monthly sales volume," said a producer in Northeast China. They last sold 10t of ferrovanadium 50%min at RMB136,000/t (USD39.9/kg V) to one terminal user late last week. Prices of vanadium pentoxide flake 98%min they inquired dropped to the latest around RMB128,000/t (USD8.6/lb V2O5) EXW D/P. Though they still couldn't cover their cost at this price level, in view of the negative market mentality, they predict that the mainstream prices of Chinese vanadium pentoxide flake 98%min would drop to around RMB130,000/t (USD8.7/lb V2O5) in the coming week.
With an annual production capacity of 3,600t, they produced about 720t in 2022 and about 450t in the first quarter of 2023. They expect to produce about 350t in April, the same as last month. They have around 40t of inventories for the moment, up by about 20t MoM.
"Buyers all preferred to watch the market and we didn't receive any inquiries during the past week. In order to reduce our inventory pressure, we could accept RMB130,000/t (USD38.1/kg V) delivered D/P now," said another producer in Northeast China. They last sold 10t of ferrovanadium 50%min at RMB135,000/t (USD39.6/kg V) delivered D/A 180 days last week. Considering that inquiries in spot market continues, they expect that the mainstream prices of Chinese ferrovanadium 50%min would drop by around RMB2,000/t (USD0.6/kg V) in the following week.
With an annual production capacity of 1,200t, they only produced about 240t in 2022 due to COVID and about 75t so far this year. They expect to produce about 25t this month, the same as last month, holding nearly 20t of regular stocks now, unchanged MoM.
"Buyers only want to buy at no more than RMB132,000/t (USD38.7/kg V) delivered D/A 180 days for the moment and we could hardly maintain our price firm as we need to guarantee our monthly sales volume," said a producer in Northeast China. They last sold 10t of ferrovanadium 50%min at RMB136,000/t (USD39.9/kg V) to one terminal user late last week. Prices of vanadium pentoxide flake 98%min they inquired dropped to the latest around RMB128,000/t (USD8.6/lb V2O5) EXW D/P. Though they still couldn't cover their cost at this price level, in view of the negative market mentality, they predict that the mainstream prices of Chinese vanadium pentoxide flake 98%min would drop to around RMB130,000/t (USD8.7/lb V2O5) in the coming week.
With an annual production capacity of 3,600t, they produced about 720t in 2022 and about 450t in the first quarter of 2023. They expect to produce about 350t in April, the same as last month. They have around 40t of inventories for the moment, up by about 20t MoM.
"Buyers all preferred to watch the market and we didn't receive any inquiries during the past week. In order to reduce our inventory pressure, we could accept RMB130,000/t (USD38.1/kg V) delivered D/P now," said another producer in Northeast China. They last sold 10t of ferrovanadium 50%min at RMB135,000/t (USD39.6/kg V) delivered D/A 180 days last week. Considering that inquiries in spot market continues, they expect that the mainstream prices of Chinese ferrovanadium 50%min would drop by around RMB2,000/t (USD0.6/kg V) in the following week.
With an annual production capacity of 1,200t, they only produced about 240t in 2022 due to COVID and about 75t so far this year. They expect to produce about 25t this month, the same as last month, holding nearly 20t of regular stocks now, unchanged MoM.
