GLOBAL VANADIUM WRAP: European, US prices surge amid significant supply concerns, outpacing Chinese upward moves

Date: Mar 14, 2018

The Chinese vanadium market edged upward despite limited trading activity, while the European and US ferro-vanadium markets surged on significant supply concerns.

  • Chinese vanadium suppliers raise offers despite limited activity
  • European market surges on increasingly tight supply
  • US ferro-vanadium market strengthens again, supply squeeze supports

Chinese ferro-vanadium export prices continued to trend higher over the past week, supported by higher prices for the material in Europe and the tight supply of vanadium pentoxide (V2O5).

Metal Bulletin assessed fob China ferro-vanadium prices at $62-64 per kg on Thursday March 8, up from $61-62 per kg one week ago.

Meanwhile, the price quotation for fob China V2O5 surged to $14-14.60 per Ib on March 8, up by 4% from the previous week’s assessment of $13.50-14 per lb.

“I quoted $63.50 on [March 7], but stopped quoting from [March 8],” a ferro-vanadium exporter and trader told Metal Bulletin.

“Major domestic V2O5 producers reported no cargoes to sell in spot market, and ferro-vanadium producers raised prices and are selling in small amounts. We failed to source spot material, so have had to stop quoting,” the above ferro-vanadium exporter explained.

Metal Bulletin has learned that major V2O5 producers including Tranvic Group, Jianlong Group and Desheng Group are fulfilling long-term orders and claimed to have no stock to sell into spot market.

“Suppliers of ammonium metavanadate and vanadium pentoxide claimed they had no stocks and I could not find the raw materials to maintain production, so I did not offer ferro-vanadium [in the export market] too,” an exporter based in China’s Hubei province said.

There were very few export offers for V2O5 last week, with only one source concluding a deal for two containers of the material at $14.60 per Ib.

The price gains in Europe took Chinese exporters by surprise, but the limited availability of spot cargoes in the market has left many unable to take advantage of deals at higher prices, causing a great deal of anxiety.

European market strengthens again

The European ferro-vanadium market surged once again last week, with dwindling spot supply continuing to provide support for prices.

To read full article please click here