GLOBAL VANADIUM WRAP: Persistent upstream tightness affirms higher prices in China, Europe

Date: Nov 27, 2017

Ferro-vanadium and vanadium pentoxide prices consolidated at higher levels last week in China and Europe, with no change to the tight raw material supply situation.

  • Chinese prices solidify, underpinned by upstream tightness
  • European prices continue to catch up with Asia while cheaper offers fade
  • Activity in the US slows for the Thanksgiving holiday

Chinese vanadium export prices climbed up over the past week, catching up with rising input costs while the domestic market strengthened.

Metal Bulletin’s price assessment for Chinese V2O5 narrowed to $9-9.20 per Ib fob China on Thursday November 23, from $8.90-9.20 one week earlier, reflecting a firmly tight but steady Chinese market.

“Domestic supply is still tight with closing prices roughly at 132,000-135,000 yuan ($20,061-20,517) per tonne, equivalent to $9.10-9.30 per Ib. Seldom buyers outside China can accept these levels now,” an exporter told Metal Bulletin.

The exporter has not quoted for cargoes in the export market for around one month due to the firm premium for domestic sales versus the international market.

“We are quoting $9.10-9.20, in line with domestic closing prices of 132,000-134,000 yuan per tonne, but no deal has been sealed in the past week. As the domestic tightness cannot be eased in the short run, several suppliers here quoted 140,000 yuan for the cargo,” a second exporter said.

In Europe, V2O5 prices continued to firm in response to the tight supply situation, albeit still lagging behind Chinese material with alternative sources available on the ground.

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