Chinese Ammonium Metavanadate Prices Stay In A Stalemate

BEIJING (Asian Metal) 20 Mar 20 – Currently, mainstream prices of Chinese ammonium metavanadate 98%min stand at RM89,000-92,000/t (USD12.5-12.9/kg) Inc-VAT EXW D/P, down by RMB1,000/t (USD0.1/kg) from last week. As market inventory stays at high level, most suppliers face high sales pressure. Insiders believe that mainstream prices would stay weak in the coming week.

A producer in South China quotes their ammonium metavanadate 98%min at RMB91,500/t (USD12.9/kg) Inc-VAT EXW D/P and they can accept RMB91,000/t (USD12.8/kg) for firm bids, the same as last week. “Inquiries are rare to see at the moment and it’s hard to close deal at high price level,” said the source. Their last deal was made late January, when they sold 30t at RMB93,000/t (USD13.1/kg) Delivered D/P. Considering the supply situation keeps loose, he believes that mainstream prices would be weak in the coming week.

With an annual production capacity of 1,200t, they produced 720t in 2019 and didn’t produce in the first three months this year because of the virus. They prepare to resume production at the end of March, holding 30t of stocks at the moment.

A consumer in South China claimes the current price for ammonium metavanadate 98%min he received stands at RMB90,000/t (USD12.6/kg) Inc-VAT EXW D/P, unchanged from last week. “We delay the purchase to early April because of the virus. It’s easy to find ammonium metavanadate in spot market and I learnt our suppliers hold hundreds of tons now,” said the source. Their targer price keeps at RMB89,000/t (USD12.5/kg). Considering the supply situation stays loose, he believes that mainstream prices of ammonium metavanadate 98%min would keep weak in the coming week.

With an annual consumption capacity of 800t, they consumed 510t in 2019 and didn’t consume during the past three months due to the virus, holding no stock at the moment.