GLOBAL VANADIUM WRAP: Chinese export prices dive on low buying interest; EU, US FeV prices soften on profit-taking

Date: May 16, 2018

Global ferro-vanadium prices fell last week after Chinese ferro-vanadium exporters dropped offers amid a lack of buying interest, while European and US traders took advantage of arbitrage opportunities.

  • Limited buying interest dragging down Chinese ferro-vanadium export prices
  • European ferro-vanadium prices declined on profit-taking activity
  • US ferro-vanadium market softens amid weaker overseas markets

Falling prices in Europe and low buying interest from outside China are dragging down fob China ferro-vanadium prices, but owing to low availability, the fob China vanadium pentoxide market saw a deal at higher prices.

Metal Bulletin assessed fob China ferro-vanadium min 78% prices at $64-66 per kg on Thursday May 10, down from $65-69 in the prior week.

“The downtrend in the European ferro-vanadium market is still adding pressure to our export business, and I lowered my offers to $65-66 [per kg] from last week’s $69,” one vanadium exporter told Metal Bulletin.

“I got two inquiries over the past week, one from Europe and one from Japan, but no deals,” a major ferro-vanadium exporter said, agreeing that it had been a quiet ferro-vanadium export market.

But in the fob China vanadium pentoxide market, there was a deal for 20 tonnes done at $15.30 per Ib to South Korea. This widened the Metal Bulletin fob China vanadium pentoxide quotation to $14.40-15.30 on Thursday, up 40 cents on the high end from $14.90, and flat on the low end.

“Supply for domestic V2O5 is still tight, but inquiries are also thin. According to domestic V2O5 prices, the export cost is above $14, but as the V2O5 export market is small, oversea buyers prefer to place orders with their regular suppliers instead of wasting time searching for lower prices around the market. That is why sometimes the market sees deals at high prices, but many offers at low levels,” one V2O5 exporter told Metal Bulletin.

Profit-taking in European market
Meanwhile, the European ferro-vanadium market weakened last week thanks to traders turning to profit-taking to clear inventories and avoid potential losses from further price falls.

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