GLOBAL VANADIUM WRAP: European FeV prices up on renewed demand; China static

Date: Sep 5, 2018

The European ferro-vanadium market has shown renewed signs of life over the past week, with prices beginning to rebound amid a return of consumer interest in the spot market, while Chinese export prices remained flat on a lack of interest among overseas buyers.

  • Chinese export markets continue flat on buyer inactivity
  • EU FeV market sees bump on return of consumer demand
  • US FeV spot market continues to see limited interest.

Export prices for ferro-vanadium and vanadium pentoxide (V2O5) were unchanged week-on-week on Tuesday September 4, and deals were sparse in China’s export market, because overseas buyers have not come back for purchases.

Metal Bulletin’s latest price assessment for ferro-vanadium, min 78%, fob China, was $79-82 per kg on August 30, unchanged since August 16.

“Domestic prices rebounded recently because of the positive outlook for the following two months, ahead of the implementation of a new rebar standard in November,” an exporter told Metal Bulletin.

Rebar producers in China will definitely stock up on ferro-vanadium before November because of the requirements of the new rebar standard. Meanwhile, overseas buyers are expected to come back for purchases after mid-September, sources told Metal Bulletin.

“We hold an optimistic attitude toward market demand in the fourth quarter, which might start from sometime in September,” the first exporter added.

“The export market has not seen evidence of inquiries or deals, and offers were around $79-82 per kg. I did not quote because no inquiries were received,” a second exporter said.

Meanwhile, Metal Bulletin’s price assessment for V2O5, fob China, stayed at $18.50-19.00 per Ib on August 30, also unchanged since August 16.

“The V2O5 export market was quiet, but domestic supply continues to be tight and prices could easily go up if buying interest comes back,” a third exporter said.

The European ferro-vanadium market rebounded slightly last week amid an uptick in spot-market activity when consumers began to return to the market in the second half of the week.

Spot prices for European ferro-vanadium became firmer at $80.20-81.20 per kg on August 31, delivered duty-paid in Europe. This was up by 0.4% from $80.00-80.75 per kg in Metal Bulletin’s midweek assessment.

The upward move marked the first sign of strength since prices reached $81.70-83.00 per kg on July 25, when they edged up from $81-83 per kg on July 20.

Prices have been under marginal pressure since then, with market activity largely dormant during August.

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