Chinese Ferro-Vanadium Prices Rise on Resumed Buying in Anticipation of Rebar Quality Check
The export price for ferro-vanadium in China rose for a second consecutive week in the latest assessment period ended on Thursday June 6, tracking the strength seen in the domestic market.
Fastmarkets MB assessed the export price for ferro-vanadium, min 78%, fob China, at $35-36.50 per kg on June 6, up by 2.1% from $34-36 per kg a week ago.
Many Chinese ferro-vanadium exporters maintained firm offer prices last week on noticing that the domestic price has been on the rise amid resumed buying interest from both traders and mills in China.
“The number of inquiries from abroad was not as many as that in the prior week, but we do not plan to cut our offer prices anymore because we’re nearing our costs and we could not do business without any profit,” a Chinese ferro-vanadium exporter said on June 6.
“Meanwhile, selling domestically is a good alternative for us because domestic demand seems to be quite good and the price is much more favorable than that in the European market,” the exporter added.
Despite the lackluster demand in the export market, the Chinese domestic market saw increasing demand for ferro-vanadium and vanadium nitrogen from both traders and mills last week.
Many Chinese traders entered the market for restocking ferro-vanadium and vanadium nitrogen in anticipation of continued price increases in the coming weeks amid market chatter that China would implement checks on rebar quality in the near future.
“The reason that traders were willing to stockpile is not only because they realized that the current price had been at a comparatively low level but also because they are expecting the price to rise amid possibly growing demand stemming from an anticipated check on the implementation of the new rebar policy,” a Chinese market source said.
