GLOBAL VANADIUM WRAP: Prices rise across the board amid tight supply of V2O5

Date: Nov 20, 2017

Consistent demand and limited supplies allowed ferro-vanadium and vanadium pentoxide prices to consolidate their recent gains in China, Europe and the United States last week.

  • Chinese exporters were inactive as the domestic market is profitable
  • Sellers hold out for higher prices in Europe as traders and consumers restock
  • US prices expected to rise further as stocks are depleted

Chinese vanadium products prices continued to rise amid tight availability of vanadium pentoxide although tenders for vanadium alloys from steel market are thin.

Metal Bulletin assessed fob China vanadium pentoxide prices at $8.90-9.20 per lb on Thursday November 16, up 4.0% week on week.

“Domestic supply of vanadium pentoxide is still tight and several major producers, such as Pangang Group, Jianlong Group and Shaanxi Wuzhou Mining, reduced production for different reasons, including high costs for extracting vanadium from stone coal or being short of vanadium titanium magnetite ore,” a large producer source said.

Closing prices of vanadium pentoxide have ranged 130,000-135,000 yuan per tonne in China, equivalent to $8.93-9.28 per lb fob China, while prices in Europe are still running under $8 per lb, meaning it is more profitable for vanadium pentoxide exporters to sell domestically.

Metal Bulletin’s assessment for spot ferro-vanadium prices was $40-42 per kg, fob China, on November 16, up 2.5% from the previous week following the upward pace of domestic vanadium pentoxide.

“Our offers are at least $40-41 [per kg] based on domestic closing prices, and some other exporters’ cost are $41-42 now,” a northeastern Chinese exporter said.

“Foreign buyers are hesitant to place orders at this range, but we do not intend to accept lower prices now,” a second exporter said.

European vanadium prices rose on consistent buying interest
European ferro-vanadium prices consolidated their recent gains last week. Delivered duty-paid prices held stable at the midweek assessment of $40-41.50 per kg on Friday November 17, up from $37-40 per kg a week earlier.

A mix of trader and consumer buying has kept the spot market active and price gains underpinned, though offers at $42 per kg were yet to be accepted for any transactions of five tonnes or above.

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