GLOBAL VANADIUM WRAP: V2O5 prices jump in China, Europe on low availability; US market stabilizes

Date: Jun 26, 2018

Prices for vanadium pentoxide (V2O5) jumped in China and Europe in the week ended Friday June 22, buoyed by tight supply in the spot market, while US ferro-vanadium quotations stabilized though low availability persists there.

  • China’s vanadium export prices jump on domestic tightness
  • European vanadium market moved higher owing to tight spot cargoes
  • US ferro-vanadium market largely was stable, but tightness continues

Metal Bulletin’s latest assessment of fob China ferro-vanadium min 78% pricesmoved up to $68-76 per kg on Thursday June 21 from the prior week’s $67-71.

“One Japanese buyer asked for 20 tonnes of ferro-vanadium but I can only supply 10 tonnes, the settlement price was $74 [per kg],” a China-based ferro-vanadium exporter told Metal Bulletin.

“I am offering $76 in the export market, higher than the domestic level as the payback for exporting cargoes is longer, otherwise I prefer to sell in the domestic market with payment by cash for slightly lower prices,” a second ferro-vanadium exporter said.

“The domestic supply is tight and demand is good with prices rising,” the second exporter added.

Meanwhile, Metal Bulletin’s assessment for vanadium pentoxide fob China rose to $14.80-16.50 per lb on Thursday from $14.50-15.50 per Ib the prior week.

Metal Bulletin heard much higher offers for vanadium pentoxide, reaching as high as $17 and $17.50 per lb, because very few exporters can provide spot material to overseas buyers. Suppliers are opting to supply the domestic market instead, which allows them to receive payment sooner to balance their half-yearly books, sources told Metal Bulletin.

“Supply of V2O5 is much tighter than ferro-vanadium, and the quicker repayment for domestic sales is attractive to sellers as the half-year end is approaching,” one major vanadium pentoxide exporter said.

Meanwhile, in Europe the ferro-vanadium market continued to firm last week, with tight spot availability still paving the way for elevated prices.

Spot prices for European ferro-vanadiumincreased to $72.40-73.50 per kg, delivered duty-paid on Friday, up 0.6% from $72-73 per kg during Metal Bulletin’s midweek assessment.

Since reaching a price floor of $63.50-65 per kg on May 23, prices have now risen 13.54% to date.

Spot activity picked up slightly after a slow start to the week, but the pace of increase has been unexciting.

Traders continued to drive much of the spot market interest over the last week, with many tying to buy back material after running inventories low.

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