Southeast Asian Ferrovanadium Prices Move Down
BEIJING (Asian Metal) 11 Jun 20 – Currently, mainstream prices of Southeast Asian ferrovanadium 80%min stand at USD23.8-24.3/kg V, down by USD0.2/kg V from last week. Inquiries from end consumers stay rare, which leads market prices keep dropping. However, considering prices of raw material keep steady during the past week, insiders believe that mainstream prices of Southeast Asian ferrovanadium 80%min would keep firm in the coming week.
“We produce ferrovanadium 80%min and mainly sell to European market. However, few of our regular clients would make purchase now due to the COVID-19,” a producer in Southeast Asia said. They just sold 20t of ferrovanadium 80%min in Asian market at USD23.8/kg V this Tuesday, down by USD0.2/kg V from the baseline price they held last week. The current market price for vanadium pentoxide flake 98%min he received stands at USD5.5/lb V2O5, unchanged from last week. Considering the cost keeps firm, he believes that mainstream prices of Southeast Asian ferrovanadium 80%min would keep steady in the coming week.
With an annual production capacity of 1,000t, they produced about 630t in 2019 and about 220t in the first five months this year. They expect to produce about 40t in June, unchanged from May, holding about 20t of stocks now, down by 20t from last month.
“None of our regular clients would like to buy at more than USD24/kg V at the moment. In order to promote sales, we could at most accept a discount of USD0.2/kg V for USD23.8/kg V,” another producer in Southeast Asia said. As their European clients stopped purchase due to the COVID-19, they mainly supply Asian market now. Supported by their high cost, they would not accept any orders below their current quotation. He believes that mainstream prices of Southeast Asian ferrovanadium 80%min would stay firm in the coming week.
With a production capacity of 840tpy, this company produced about 60t in May and expects the volume would reduce slightly this month due to lack of orders. They only produce according to orders, holding no stocks now.
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