Chinese Vanadium Pentoxide Flake Prices Face Heave Downward Pressure
BEIJING (Asian Metal) 2 Apr 20 – Currently, mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB93,000-96,000/t (USD6.1-6.3/lb V2O5) EXW D/A 180 days, unchanged from last week. As prices of downstream vanadium products keep dropping, consumers refuse to buy raw material at a high price level. Insiders believe that mainstream prices of Chinese vanadium pentoxide flake 98%min would edge down in the coming week.
A consumer in South China notes the current price for vanadium pentoxide flake 98%min he received stands at RMB92,000/t (USD6.0/lb V2O5) EXW D/P, unchanged from last week. “Our dealing prices for vanadium nitride have dropped to RMB141,000/t (USD25.8/kg V) EXW D/P now. We could at most accept RMB90,000/t (USD5.9/lb V2O5) for raw materials, or we couldn’t guarantee our baisc profit margin,” said the source. Their last deal was made in the middel of March, when they bought 60t at RMB96,000/t (USD6.3/lb V2O5) EXW D/A 180 days. He believes that mainstream prices of Chinese vanadium pentoxide flake 98%min would drop by RMB2,000/t (USD0.1/lb V2O5) in the coming week.
With an annual consumption capacity of 2,000t, they consumed 1,700t in 2019 and have consumed 190t so far this year. They consumed 115t in March and expect the same volume in April, holding 30t of stocks now.
A consumer in North China claims the current price for vanadium pentoxide flake 98%min he received stands at RMB96,000/t (USD6.3/lb V2O5) EXW D/A 180 days and they could buy at RMB93,000/t (USD6.1/lb V2O5) EXW D/P for firm bids, unchanged from last week. “Our downstream clients refuse to buy vanadium nitride at more than RMB141,000/t (USD25.8/kg V) EXW D/P now. However, our cost keeps firm at RMB145,000/t (USD26.5/kg V). So we could not buy raw material at their quotation,” said the source. He added, “Major producers of vanadium pentoxide flake 98%min refuse to drop their prices now but I believe that they would drop their quotation to RMB90,000/t (USD5.9/lb V2O5) EXW D/P in the coming week or no one would make purchase.” Their last deal was made two weeks ago, when they bought 32t at RMB94,000/t (USD6.1/lb V2O5) EXW D/P.
With a consumption capacity of 1,800t, they consumed 1,500t in 2019 and have consumed 200t so far this year. They expect to consume 60t in April, down by 30t from March, holding 30t of stocks now.
www.asianmetal.com