China’s vanadium alloys prices dip on weak demand
As of February 24, China’s national VN price averaged Yuan 154,000/tonne ($21,950/t), down from its nearly four-month high of Yuan 160,000/t on February 19, and the national average price of the 50% grade FeV also softened to Yuan 106,000/t from Yuan 109,500/t on February 18, according to Mysteel’s assessment, and all the prices include the 13% VAT.
“The short-lived price strengthening for the two vanadium alloys after the Chinese New Year (CNY) holiday was attributed to the stretched supplies until early February, as many smelters were still shut and trucking had been an issue, all because of the novel coronavirus disease (COVID-19),” a market source from Shanghai explained.
Since late last week, though, many vanadium alloy smelters have resumed operations, and logistics services have shown signs of improvement with many highways reopened for traffic at no toll fees, and an official from a FeV smelter in Liaoning of Northeast China confirmed that both their production and delivery had been back to normal.
In China, integrated steel mills usually use VN in their converters, while electric arc furnace (EAF) producers and special steel mills consume FeV for their steel production, Mysteel Global understands, but the demand from most of the Chinese steel mills have been slack, as many have been troubled with high finished steel stocks and lower steel margins, according to the Shanghai source.
“The bidding prices for February VN supplies from some large-scale steel mills late last week were all below Yuan 160,000/t,” he said, noting that their requested volumes for February was slower than January too.
Fortunately, the price of vanadium pentoxide has softening together with better supply, and as of February 24, the raw material price in Southwest China’s Sichuan province, one of the major supply bases, dropped to Yuan 96,000/t including 13% VAT from its near three-month high of Yuan 98,500/t on February 18, according to Mysteel’s database.
Uncertainties remain in China’s steel market and all the related raw materials supplies, though the situation may look up, as China’s central government, after having the national economy stalled since late January because of the battle against the epidemic, has urged enterprises to systematically and gradually resume operations, and transportation both for passengers and cargoes to return to normal, market sources shared.
A lengthier limited economic activity in China may hurt the national economy by a greater degree and the interests of the citizens may be hurt too, Mysteel Global understands.
Written by Zhiyao Li, lizy@mysteel.com
Edited by Hongmei Li, li.hongmei@mysteel.com
China vanadium pentoxide price under pressure of imports
Aug 12, 2020 13:40
High costs lift Chinese vanadium nitride prices
Jul 23, 2020 13:30
Chinese vanadium nitride prices recover as costs firm
Jul 08, 2020 13:35
China’s vanadium alloys prices soften on lower costs
Jun 24, 2020 15:30
China’s vanadium nitride prices surge on high demand
Jun 11, 2020 08:35