Vanadium Market Fluctuates Slightly
www.ferroalloynet.com: Mr. Lv, how do you do? Thank you for taking time from your busy schedule to accept our interview. First of all, would you like to make a brief introduction to your company?
Mr. Lv: Shaanxi Jutai New Material Science and Technology Co., Ltd. was registered with Tongguan County Administration for Industry and Commerce on April 13, 2016. The initial registered capital is 47.7987 million RMB, which is located in the Yellow River Golden Triangle Industrial New Area of Tongguan County, Weinan City, Shaanxi Province.
The main products are ternary materials: cobalt sulfate, nickel sulfate and lithium. And a variety of specifications of ammonium metavanadate, vanadium pentoxide and molybdenum oxide. Other series of products are being developed in succession.
www.ferroalloynet.com: Has the company planned to expand its production of vanadium products in the past two years?
Mr. Lv: The production of ammonium metavanadate is expected to increase by 1000 tons per month by the end of 2019.
www.ferroalloynet.com: What are the advantages of your products and processes in the industry?
Mr. Lv: Our company has the perfect qualification of hazardous waste production and recycling, and has built and put into operation the advanced international process of material recycling and utilization, so as to realize closed-loop production in the production area. Comprehensive recovery and utilization of materials. And in most production processes and workshops, to achieve online DCS automation control, to achieve safe and green production enterprises, has been rated as a national high-tech enterprise. Domestic technology and material recovery, downstream product quality, product system are in the leading level.
www.ferroalloynet.com: Ammonium metavanadate prices have rebounded slightly in recent days. What do you think of the sustainability of the price rise?
Mr. Lv: As for the price of vanadium, the surge in the price of vanadium in the past year was attributed to the change of national standards and the fact that many vanadium-containing materials in the world could not enter China for domestic policy reasons, so that many vanadium-containing materials could not be manufactured into the market, and the surge in vanadium price was caused by the increase in demand. The sharp drop in vanadium price after the year is also due to the uncertainty of demand (i.e. national standard). In addition, the vacuum period when international materials cannot be produced has passed, and the market has entered. In addition, the surge in production caused by the rise in vanadium price in China, Southeast Asia and South Africa has led to the decline of vanadium price, which is caused by the normal change in supply and demand and the impact is long-term. The recent price rebound is not a change in the supply-demand relationship, but a prediction and sensitivity of vanadium prices. Just after experiencing the high price of vanadium, the price of 100,000 yuan has formed the psychological positioning of the market, which is mainly caused by trade or increased inventory. When the price reaches 100,000 yuan, the increase of stock and speculative hoarding in trade result in the shortage of goods in the market and the rise of prices. It is also not excluded that when the vanadium price falls below 100,000 yuan, the production of enterprises with high cost will be reduced or stopped. However, the fundamental supply-demand relationship of vanadium market has not changed the current situation of lack of demand, and does not make the actual production demand of the market rise. o in my opinion, this rebound is also a market shock, or after the rebound, returning to the original price, eliminating some high-cost enterprises. It is predicted that the future market price of vanadium should fluctuate between 10,0000 to 150,000 yuan before new demand emerges, which will be more reasonable for both producers and demanders.
www.ferroalloynet.com: If the vanadium price is low, then what price would be more stressful for you?
Mr. Lv: 100,000 yuan should be a watershed to get slight profit, but vanadium is not the main profit point and main product of our company after all, so vanadium price has little influence on our company’s production.
www.ferroalloynet.com: As far as you know, is it possible to have a large demand for vanadium in other fields?
Mr. Lv: The demand for vanadium is mainly for iron and steel, vanadium batteries and some chemical products. The iron and steel industry is too dependent on the general economic situation. This year’s industries, such as real estate, are not very good. The vanadium battery industry is not very easy to accept the current vanadium price, and it is still in its infancy. Other chemical products have a small share.
www.ferroalloynet.com: What do you think of the general trend of vanadium price in the second half of the year?
Mr. Lv: Vanadium prices should fluctuate, but they may fluctuate in the range of 100,000 yuan and won’t be much.
www.ferroalloynet.com: Thank you, Mr. Lu, for accepting our interview. We wish Shaanxi Jutai New Material Science and Technology Co., Ltd. a smooth journey forward.
Mr. Lv: Thank you!
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