GLOBAL VANADIUM WRAP: FeV, V2O5 prices recover with demand; upstream tightens

Date: Nov 13, 2017

Vanadium prices continued to rally last week in China, Europe and the US, recovering some of their recent losses, while upstream tightness took its toll on the market.

  • European prices rise while traders restock in tight market
  • Upstream tightness, rising scrap prices drive prices higher in China
  • US ferro-vanadium rebounds while demand recovers

In Europe last week, there were no signs of year-end destocking or seasonal price weakness amid buoyant demand, limited stocks and rallying prices in Asia.

Metal Bulletin assessed ferro-vanadium prices at $37-40 per kg, delivered duty-paid in Europe, on Friday November 10, up 6.2% from the midweek assessment of $35.40-37.10 per kg.

“We don’t have a huge quantity [of ferro-vanadium] left before the year-end so we’re comfortable not selling unless we can achieve much higher prices,” a producer source said.

“If you roll your offer it’s accepted immediately,” the producer added.

Others are watchful of their inventories while the end of the year approaches, mindful that they may require some material to allocate to deliveries under long-term agreements.

European ferro-vanadium prices are up 13.2% since the start of the month, with the rally taking some market participants by surprise after six consecutive weeks of falling prices.

European consumers have been forced to buy during the rally over the past two weeks, after previously waiting for prices to weaken further.

Demand from traders, however, has also helped to push prices higher, both with European buyers restocking and others shipping the material to Asia where prices are higher and demand is greater.

China continues to strengthen 
The Chinese vanadium market has tightened considerably, particularly upstream, following a large 700-tonne sale of vanadium pentoxide two weeks ago.

Most exporters are no longer quoting to overseas buyers, especially since the Chinese market is leading the rest of the world higher and more appealing prices can be achieved domestically.

Metal Bulletin assessed fob China V2O5 prices at $8.40-9.00 per lb on Thursday November 9, a jump up of 23.4% from a week ago.

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