GLOBAL VANADIUM WRAP: Ferro-vanadium prices tumble; pentoxide follows downtrend
Date: Mar 26, 2019
Ferro-vanadium prices tumbled in Europe and China last week, with the market in the United States following the downtrend in prices amid sluggish demand in the spot market.
- Chinese ferro-vanadium market falls on lack of foreign buying interest; V2O5 follows
- European ferro-vanadium market slumps on aggressive offers
- European V2O5 price tumbles on limited buying interest
- US ferro-vanadium price follow downtrend overseas amid lackluster spot demand
In China, the export price for ferro-vanadium, min 78%, fob China, fell on Thursday March 21 for the third consecutive week to $64-67 per kg, from $68-72 per kg previously.
The price has gone down by 12.7% month on month, according to Fastmarkets’ historical data. It was also down by 5.1% from this time last year, although it had been as high as $130-140 per kg from mid-October to mid-November 2018.
Overseas buyers stayed on the market sidelines last week amid softening in both the international and Chinese domestic markets. Buyers were expected to re-enter the market for restocking when the ferro-vanadium price finally reaches a bottom, market sources said.
Some Chinese ferro-vanadium exporters adjusted their offer prices downward last week to attract buying interest from overseas markets, amid thin inquiries and a sharp price decline in the European market.
“We had to lower our offer price by around $5 per kg on a limited number of inquiries [last week],” a Chinese ferro-vanadium exporter said.
“Even so, I feel we’re unlikely to see any deals concluded [in the export market] because, no matter how low your offers are, buyers will always expect much lower prices,” he added.
“Meanwhile, the domestic [ferro-vanadium] price has become more favorable than the international price, although the domestic market also faces price softening amid subdued demand from mills. In this situation, it’s better to sell domestically now,” the exporter added.
