Ferrovanadium market trends this week (2.17-2.21)
This week, the ferrovanadium market showed a slight weakening trend under pressure. According to the monitoring of Global Ferroalloy Network, due to the slow recovery of transaction demand, the domestic ferrovanadium price weakened slightly again. The price of 50 ferrovanadium common resources was mostly around 83,000 yuan/ton including tax, a few low-priced futures were quoted at 82,000 yuan/ton, and the resources of traders and large factories were quoted at 84,000 yuan/ton. The actual transaction was between 81,000-83,000 yuan/ton.
Ferrovanadium market trend trends last week (2.11-2.17)
In the early part of last week, the ferrovanadium market showed a trend of fluctuating and strong operation. According to the Global Ferroalloys Network, from February 6 to February 14, the market price of ferrovanadium was firm, but the transaction was still weak. The price of 50 ferrovanadium was mostly 84,000-85,000 yuan/ton including tax, and the transaction negotiation was deadlocked at 83,000 yuan/ton. The buyer’s inquiry was 82,000-83,000 yuan/ton. As February 17 approached the weekend, the market demand recovery was less than expected, and the price of ferrovanadium began to show signs of slight weakening, and the overall trend gradually went down.
The main reason for the decline in ferrovanadium prices in February
Demand side
- Steel industry: Many places in China are promoting environmental protection and production restriction policies, the operating rate of steel mills has dropped slightly, and the short-term demand for ferrovanadium alloy (used for high-strength rebar) is under pressure.
- New energy field: The heat of the vanadium liquid flow battery industry chain has increased (such as the increase in bidding for energy storage projects), and medium- and long-term demand expectations have increased, but the boost to the spot market this week is limited.
Supply side
- Dynamics in the main production areas: The supply of vanadium raw materials in Sichuan and Panxi is stable, but some companies have suspended quotations due to cost inversion (the cost of vanadium slag extraction is about 90,000-100,000 yuan/ton), and the supply of goods in the market has decreased.
- Import supplement: The import price of South African ferrovanadium has risen slightly due to exchange rate fluctuations, but the domestic purchasing willingness is low, and no effective supplement has been formed.
International price
On February 19, European ferrovanadium was 23.4 (down 0.2)-24.41 (up 0.2) US dollars/kg vanadium, equivalent to RMB 83,900-87,500/ton; vanadium pentoxide was 5-5.71 US dollars/pound, equivalent to RMB 77,500-88,500/ton; American ferrovanadium was 15-15.5 yuan/pound vanadium, equivalent to RMB 118,600-122,500/ton.
Ferrovanadium price Forecast for next week
After the steel price fell, traders’ inquiries for vanadium nitrogen fell to 111,000 cash and ferrovanadium to 80,000 cash; but the pressure of production inversion is still there, and most manufacturers are unwilling to ship at this price. Although retail vanadium flakes are difficult to trade at a price of 73,000, there is no stock available at a price of 72,000 cash from downstream; the vanadium price fell to the level before the New Year again, the market has limited low-priced supply, and vanadium products are on the verge of inversion. It is expected that there will be little room for short-term downward movement or it will continue to run in a narrow range.
Zhenxin Metallurgy are supplier of ferrovanadium alloy from China
As a manufacturer specializing in the production of ferroalloys, Zhenxin Metallurgy can supply ferrovanadium 50, ferrovanadium 70, and ferrovanadium 80 specifications. If you have demand for ferrovanadium, you can contact us.
