GLOBAL VANADIUM WRAP: Chinese export activity increases; European, US FeV markets continue to feel supply constraints

Date: Apr 3, 2018

Chinese vanadium exporters experienced increased activity over the past week, while ferro-vanadium tightness continued to bolster prices in the United States and Europe.

  • Chinese exporters see uptick in activity levels; V2O5 offers up on limited availability
  • European ferro-vanadium market edges upward despite slowed spot market ahead of holidays
  • US ferro-vanadium market continues ascent on supply concerns

The Chinese ferro-vanadium export market saw more deals over the past week, with prices unchanged on a weekly basis, but exporters raised their offers for vanadium pentoxide (V2O5) amid low availability.

Metal Bulletin’s latest assessment for the fob China ferro-vanadium price stood at $68-70 per kg on Thursday March 29, unchanged from the previous week. Meanwhile, the assessment for V2O5was up to $14.50-15.80 per lb from $14-15.50 per lb one week ago – an increase of 2.7%.

“I am offering $69 [per kg] for ferro-vanadium fob China, and concluded three deals over the past week. One for 10 tonnes at $69.50 and two for 20 tonnes at $68 and $69 respectively,” one bid exporter told Metal Bulletin, adding that he had closed more deals this week than in the prior one.

“I sold 20 tonnes at $70 per kg and maintained offers at $70 unchanged,” a second exporter said.

In the V2O5 market, low availability of material due to several major exporters having signed long-term contracts and no longer quoting in the spot market saw suppliers push up their offers over the past week.

“We are quoting $15.60-15.80 [per lb] and sealed a 20-tonne deal at $15.80 in the past week. It is hard to find material at lower prices,” one V2O5 exporter said.

“Only some exporters can quote for V2O5, so offers are ranging widely from $15-17 per lb, but deals are thin,” a second V2O5 exporter said, confirming the low availability of V2O5 in the export market.

Tightening supply supports European FeV market
The European ferro-vanadium market edged higher again this past week, with suppliers continuing to command higher prices amid thin inventories.

Metal Bulletin assessed the spot price for European ferro-vanadium at $70.60-73 per kg on March 28, delivered duty-paid in Europe, up from $70.15-72.50 per kg on March 23.

Suppliers were able to continue to elevate offering prices despite limited spot market activity ahead of the Easter holidays.

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