Vanadium Series Review in May: Poor Demand, Vanadium Products Stable First And Then Falling

In May, vanadium product transactions basically showed a trend of first stabilizing and then slightly correcting at the end of the month, with transaction prices falling by 500-3000 yuan/ton compared with the previous month. After the May Day holiday, vanadium market transactions continued to slow down, and steel mills' demand decreased significantly after concentrated procurement before the holiday; but the price of flake vanadium was relatively strong, and the cost pressure of vanadium alloy was relatively large, and the quotation was basically stable.

By the middle and late part of the month, the market transaction volume had not improved, and the shipment pressure of vanadium product manufacturers had gradually increased. A small amount of vanadium alloy steel bids began to decline slightly, and retail flake vanadium also gradually reduced the price to about 75,500 cash to promote transactions. However, the mainstream flake vanadium large factories have maintained their price support sentiment, and the long-term unit price in May has been determined to continue to remain stable at 78,000 cash. This price has a large difference with retail prices, and the alloy transaction is not good and there is little demand. It is not easy for large factories to trade at high prices, and the subsequent actual transactions may still be mainly 75,500 cash.

The price of vanadium flakes is loosening and the cost support is weak. In the second half of the month, steel mills have increased their efforts to suppress alloy purchases. Vanadium-nitrogen alloys fell to 115,500-117,500 yuan per acceptance, and ferrovanadium fell to 82,500-84,500 yuan per acceptance. At the end of the month, steel recruitment was low, prices fell, and production was inverted. Alloy mills continued to reduce their expectations for raw material purchases; coupled with the record low price of rebar, some companies are pessimistic about the future, and a small number of retail vanadium flakes continue to reduce prices to 73,000-74,000 yuan for cash shipments, and there are not many low-priced sources for the time being.