GLOBAL VANADIUM WRAP: Supply tightness strengthens prices despite slower spot markets

Date: Jan 31, 2018

Supply concerns continued to drive Chinese ferro-vanadium and global vanadium pentoxide (V2O5) prices, while European ferro-vanadium prices found stability at slightly lower levels while market activity slowed.

  • Low availability continues to drive Chinese FeV, V2O5 markets
  • European ferro-vanadium prices stabilize at slightly lower levels
  • US FeV market continues to run on supply concerns, trader interest

Fob China vanadium prices continued to gain support from a strong domestic market, though very few deals have been closed in the export market.
Metal Bulletin’s latest assessment of fob China ferro-vanadium prices were $58.50-60.50 per kg on January 25, $2.50 higher at the low end with the high end unchanged from a week earlier.

While, the fob China prices of vanadium pentoxide (V2O5) jumped to $13-13.30 per Ib in the same comparison, reflecting the low availability of Chinese V2O5.

Few V2O5 exporters are quoting in the market, while domestic supply continues to be tight and closing prices are 182,000-185,000 yuan ($28,742- 29,216) per tonne, equivalent to $13-13.30 per Ib according to the exchange rate of around 6.35 between the US dollar and Chinese yuan, “but Chinese yuan still might appreciate, which will add to our export costs. Thoroughly considering the current market situation, we quit offering,” an exporter said.

Ferro-vanadium prices were at 185,000-190,000 yuan per tonne in China, and several exporters revealed their offers were at least at $60 per kg based on the cargo’s costs.

“We do not have any intention to sell before the holidays [Lunar New Year from February 15-21], and the price in the international market has room to rise, in view of the supply suspension from China for half of February [because of the holidays]. We will take a watchful attitude toward the market in February and early March,” a second exporter said.

The exporter has not concluded spot deals for several weeks, and told Metal Bulletin that there were few inquiries in the Chinese export market recently. “Most export orders are under long-term contract in January,” he said.

The European ferro-vanadium market consolidated last week, while prices settled in after the rapid run-up over the previous two weeks.

Spot prices for European ferro-vanadium basis 78% min, free delivered duty paid in Europe, strengthened to $58-60.20 per kg on January 26, down from $58.70-60.80 per kg during the mid-week assessment.

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