According to industry sources, prices of Chinese ferrovanadium of 50% grade firmed this week at CNY 96,000 to 98,000 per tonne as compared with CNY 80,000 per tonne in April.
While some traders in Asia attributed the rise in domestic prices to increased Chinese demand, others said it was the result of market speculation with people talking up the market and few deals actually being done.
Offers for ferrovanadium (80% grade) from Europe to China have been in the range of USD 19.20 to USD 19.50 per kilogram on a CIF basis up from USD 18.50 to USD 19 per kilogram earlier in May.
One China based trader said recent spot deals were settled around USD 19.50 per kilogram CIF China. He said that "We had imported some vanadium pentoxide [the raw material to produce ferrovanadium] from the US recently at USD 4.45 to 4.50/lb. And I have received spot offers from the US at around USD 5 /lb prices are going up due to more purchases from China.”
A source close to Chinese producers said that "This [the rise in domestic prices] is more to do with fund speculation. More people are looking to export to China, but there has been a lack of deals reported. Demand in China is not showing a significant rebound. Domestic prices in China remain higher than prices in the international market therefore Chinese are not willing to export."
Meanwhile, in Japan, spot ferrovanadium trade was poor this week.
One Tokyo-based trader said there had been no buyers and sellers in the spot market. He added that "We have received some inquiries from Europe around USD 19 per kilogram while we can't find sellers below USD 20 per kilogram."
Another trader in Japan said that "We haven't done any business at all in the last couples of weeks. Offer prices are below USD 19.50 per kilogram.”
One South Korean trader said ferrovanadium was sold from Europe to South Korea at USD 19.50 per kilogram CIF Korea, but he had not conducted any spot deal this week.
Source: Steel Guru
No comments:
Post a Comment