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[ferro-alloys.com] Currently, there is no spot goods in platy vanadium pentoxide market, which directly aggravates the imbalance between supply and demand. Environmental protection inspection in Panzhiua District, Sichuan Province may be continued to the midmonth of August, and supply of raw material platy vanadium pentoxide is obvious in short supply, supply of vanadium slag in China is also tense, and all kinds of raw material resources are tense, downstream plants are difficult to purchase raw material, resulting in vanadium alloys are difficult to be produced, and supply of spot goods in the market is tense, prices of all kinds of vanadium products rise sharply.

Traders in China have little Ferrovanadium inventory and they hold goods at a lower price in earlier stage, so their offers are lower than the offers of plants, cash including VAT is basically at RMB 106,000 to 108,000/ton; Ansteel strictly controls the supply of goods to its agents, and most agents do not have excess goods. Ferrovanadium plants are not willing to give offers due to instability of price of raw material, and the raw material is unavailable most of them do not have spot goods, enterprises who give offers offer at above RMB 110,000/ton. In recent few days, enquiry positivity has increased in vanadium-nitrogen alloy market, but most plants refuse to accept the orders for the reason that the raw material is unavailable, resulting in increase of purchasing difficulties of steel mill and traders; there is demand purchase in the market, but plants do not have goods or are not willing to sell goods; plants of vanadium-nitrogen alloy cannot give offers because the raw material is unavailable too. The actual concluded price reached to about RMB 160,000/ton recently, and the price will rise following the rise of platy vanadium pentoxide, a plant in Hubei District said.

Market supply and demand restricts the market, and spurt in prices this time results from the tense supply of raw material that prices of vanadium products rise sharply and show comparatively disorder. Sorrow and joy emotion interlace in the market, traders have mentality of holding the goods and waiting rise of price, and their emotion of being prudent to sell increases. Sell is easier than buy in the market, and it is expected that there is still a rise space in following market.  

• [Editor:Wang Linyan]