GLOBAL VANADIUM WRAP: China, EU prices dip in sluggish spot markets
Date: Feb 6, 2018
Chinese and European ferro-vanadium prices softened last week amid lackluster spot market demand, while the US market held firm under similar conditions.
- Chinese market slows as Chinese New Year holidays approach
- European market slightly softer on sluggish spot demand
- US market holds course despite thin trading activity
Inquiries were thin for fob China vanadium products over the past week, but domestic prices held steady with some market players leaving gradually for the Lunar New Year holiday, which begins February 15.
Metal Bulletin assessed fob China ferro-vanadium prices at $58-60.50 per kg on Thursday February 1, with the low end down by $0.50 and high end unchanged compared with the prior week.
“Domestic prices [of ferro-vanadium] firmly stabilized at 182,000-185,000 yuan ($28,888-29,365) per tonne, with some offers at as high as 190,000 yuan. While the exchange rate of the yuan again the dollar appreciated fast from 6.35 to 6.3 over the past two weeks, after assessing the export cost, we quote a firm offer at $58, but heard offers above $60, too,” an exporter told Metal Bulletin.
“I have not quoted as no inquiries came to me – but if quoted, at least at $60 now,” a second ferro-vanadium exporter said, revealing that the slight dip in the European market forced some overseas buyers to retreat to the sidelines. This exporter is also watching the market for after the week-long Chinese New Year holidays, he said.
The tightness in vanadium pentoxide (V2O5) continues in China, but the price in the Chinese domestic market has been rising for around three months, so it is normal that the market sees a correction. “But fundamentals in [the] vanadium market [are] still optimistic,” the second exporter noted.
