V supply tightened early 2005
2005-01-05 09:12:57 【Print】
BEIJING(Asian Metal) 05-Jan-05 Chinese vanadium producers have reported an extreme tight supply early 2005. Following the soaring prices last year, the domestic ferro-vanadium grading 50% are mainly quoted at well over rmb180,000/mt($43.5/kg Mo) by the moment. However, some of those producers are not enjoying the flourishing business in fact.
Although the leading producers brought up the quotations greatly to the current high level, smaller smelters found it rather difficult to contract the cargoes with domestic users recently. "It is true that we had some orders concluded at over rmb180,000/mt, but all in small quantity. Some are even under one tonne."said a ferro-vanadium producer in northeast China.
In the consideration of the previous price at about rmb165,000/mt, which had lasted for nearly a month, the smelter commented that it might be more reasonable to have the prices of ferro-vanadium staying steady at just about rmb170,000/mt.
Besides the resistance from the home consumers, the raw material shortage is irritating the producers as well.
"We have no cargoes available before mid January."said the sales manager from a Jishou based vanadium pentoxide producer. According to the spokesperson, the price of its products was concluded at rmb155,000/mt late December 2004. While, as the producer has run short of the supply, it still has no idea how to quote for the time being.
Meanwhile, another Shaanxi based producer, with 500tpy vanadium pentoxide production capacity, has stopped the production for maintenance, which might last for approximately twenty days.
Producer sources disclosed to Asian Metal that the current vanadium pentoxide scrap grading 98% is quoted at about rmb158,000/mt to rmb160,000/mt.
Although the leading producers brought up the quotations greatly to the current high level, smaller smelters found it rather difficult to contract the cargoes with domestic users recently. "It is true that we had some orders concluded at over rmb180,000/mt, but all in small quantity. Some are even under one tonne."said a ferro-vanadium producer in northeast China.
In the consideration of the previous price at about rmb165,000/mt, which had lasted for nearly a month, the smelter commented that it might be more reasonable to have the prices of ferro-vanadium staying steady at just about rmb170,000/mt.
Besides the resistance from the home consumers, the raw material shortage is irritating the producers as well.
"We have no cargoes available before mid January."said the sales manager from a Jishou based vanadium pentoxide producer. According to the spokesperson, the price of its products was concluded at rmb155,000/mt late December 2004. While, as the producer has run short of the supply, it still has no idea how to quote for the time being.
Meanwhile, another Shaanxi based producer, with 500tpy vanadium pentoxide production capacity, has stopped the production for maintenance, which might last for approximately twenty days.
Producer sources disclosed to Asian Metal that the current vanadium pentoxide scrap grading 98% is quoted at about rmb158,000/mt to rmb160,000/mt.
