GLOBAL VANADIUM WRAP: Chinese export prices soar on domestic market strength after return from holiday
Date: Oct 17, 2018
Chinese export prices soared last week, supported by strength in the domestic market, while markets in Europe and the United States were slowed by subdued activity levels.
- Chinese export price rises on domestic strength upon emergence from holidays.
- European ferro-vanadium market steady at 13-year high, awaiting further demand.
- Vanadium pentoxide price sets new 13-year high in Europe, following Chinese market upward.
- Ferro-vanadium spot prices climb in the United States despite subdued spot demand.
China’s ferro-vanadium export price jumped in line with the domestic market, with a few offers moving far higher due to supplier bullishness on the market as a result of increased demand following the implementation of new rebar standardsstarting in November.
Fastmarkets MB’s latest assessment for ferro-vanadium 78% minimum fob China jumped to $113-117 per kg on Thursday October 11 from $104-110 before China’s National Day holiday from October 1-7. But export spot market deals have not increased over the past week.
“Domestic consumers and rebar mills are stockpiling and [transaction] prices keep increasing. Exporters prefer to sell in [the] domestic market owing to favorable prices as the uptrend in [the] overseas market [has] lagged behind China,” an exporter/trader of ferro-vanadium said.
“Our offers will be around $140 [per kg] based on domestic levels, and I know it is hard to accept for foreign buyers but we will not sell at low levels,” the same exporter said.
A second exporter confirmed a sharp price increase in China, noting that he did not quote in the export market because of a favorable domestic market.
