Low Bidding Price Of Steel Plants Caused Concerns On Vanadium Market

www.ferroalloynet.com: Since April, the domestic vanadium market has continued its weak consolidation operation, but recently due to the low bidding price of large domestic steel plants and the fact that the inventory of alloy manufacturers has not been consumed, it is hard for the insiders to be optimistic about the future market. When the steel bidding price last week was temporarily stable, the vanadium plants had a strong willingness to hold the price. However, since the bidding price of large steel plants was released recently, the VN alloy plants have purchased V2O5 flakes at the generally reduced price at 92000 yuan / ton, and it is difficult to clinch a deal for high-priced V2O5 flakes. The V2O5 flakes holders in bulk market start to panic and actively offer for shipment. At present, the price is generally at 93000 yuan / ton.

Although the manufacturers is not willing to accept the low bidding price of steel plants, it is the result of market regulation under the imbalance of supply and demand. The steel market is weak and the alloy factories accumulated  inventory. It is difficult for the vanadium market to rely on the supports of V2O5 flake price alone. Let’s continue to wait and see the V2O5 flake prices from large factories in April.