Vanadium Price Hikes More than 840% in the Last Two Years

Date: Nov 2, 2018

Coming into effect yesterday was China’s new high strength rebar standard, which is set to incorporate more vanadium in its steel rebar. In the last two years alone, vanadium price has spiked over 840% in part, because of this standard.

Making it a step that could aid worldwide vanadium consumption…

Vanadium is a transition metal that can be utilised in a range of economic purposes, such as in batteries, to make titanium, chemicals and with energy storage.

But the main purpose that you need to know when it comes to vanadium is its ability to make steel and, depending on its vanadium percentage, its ability to make rebar products stronger.

In fact, 92% of Vanadium expenditure is linked to the production of steel, a commodity that is integral to global economic growth and wellbeing. This why resource analyst Jason Stevenson beliefs the most lucrative stocks can be found in this sector, read his report here for free.

China’s new standards boosting vanadium price
China is the world’s largest consumer of vanadium, making up more than 40% of the world’s production in 2017. This number is set to grow in 2018 after the implementation of China’s new regulations, as well as this, production costs of vanadium is set to rise to $24 a tonne from its previous price of $16.

As reported by Small Caps, under China’s new standard 0.3% of Vanadium will be integrated in grade three steel, on the basis that the amount will increase with each grade to gain more than 0.1% in grade five year rebar.

John Hilbert, Chairman of Vanitec — an international trade association that represents vanadium, is calling China’s regulations a ‘positive development’ in regard to aiding Vanadium global use. He said:

‘Vanadium is the most common addition for high strength rebar, because it offers the best combination of high strength, good ductility, bendability, weldability and reduced sensitivity to strain aging.’

Meanwhile, Vanitec committee member and Australian Vanadium Ltd [ASX:AVL] managing director, Vincent Algar agreed that it was an ‘exciting’ time for the sector. He continued:

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