• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Battery Metals Market
    Battery Metals News
    Battery Metals Stocks
    • Battery Metals Market
    • Battery Metals News
    • Battery Metals Stocks
    vanadium investing

    Vanadium Comeback on Hold as Market Braces for the Coronavirus

    Priscila Barrera
    Mar. 11, 2020 03:00PM PST
    Battery Metals
    Vanadium Investing

    At the end of 2019, the vanadium market was forecast to remain balanced, with expectations set on what could unfold in China. COVID-19 has changed the situation.

    A rebound in the vanadium space is now on hold as market watchers wait to see how the outbreak of the coronavirus outbreak that causes COVID-19 may impact the space. 

    At the end of last year, experts expected the vanadium market to remain balanced, setting their sights on developments in China in terms of higher demand or lower supply.

    But the start of the year is changing the outlook for most metals, including vanadium, as the COVID-19 crisis, which started in Wuhan, Hubei, in China, has everyone in a wait-and-see mode.

    Most vanadium output is used in the Asian country for steel applications, particularly the high-strength, low-alloy steel used to make construction rebar.

    Last year, rebar production in China increased by 19.1 percent, according to research firm Roskill. Demand from the rebar segment is forecast to increase moderately in 2020 and 2021, in line with the country’s crude steel production.

    But there probably isn’t much supply upside in 2020, Roskill Director Jack Bedder told the Investing News Network (INN).

    “China’s large steel producers are producing close to full capacity in terms of vanadium slag capacity, so there isn’t much upside via the co-production route.”

    Co-producers are low-cost vanadium producers, which account for about 50 percent of vanadium output.

    “All in all, with the outlook for demand solid and with co-production constrained, we expected a balanced market in 2020,” Bedder said. “But the situation could be significantly impacted by COVID-19.”

    The World Health Organization, which declared the outbreak a pandemic on Wednesday (March 11), has said that more than 125,000 people around the world have been infected, with the death toll standing at more than 4,600. Recovered cases are above 67,000.

    “This is hard to predict,” Bedder said. “Vanadium is mostly produced and consumed in China, and thus China’s recovery from the epidemic will be a key factor.”

    According to Roskill, data suggests a significant drop in construction and rebar production so far this year, with rebar inventories at record highs in February.

    Similarly, CRU Group Senior Consultant Willis Thomas told INN that what happens with vanadium prices in 2020 will depend on the impact of COVID-19.

    “Pre-COVID-19, we expected vanadium prices to more likely rise to the end of the year than fall, but the virus rules all at this point,” he said.

    For the expert, if the coronavirus crisis had happened five years ago, there might have been more price action in the initial stages of the outbreak.

    “Why? Because at that time China was a major net exporter,” he said. “However, recent demand moves in China have moved the market to a slim net exporter in 2019 overall.” That resulted in a more muted loss than in other commodities.

    Investors are also paying close attention to the potential that vanadium holds via its energy storage capabilities in vanadium redox flow batteries (VRFBs) and the effect the coronavirus could have in that sector. A recent report by Lux Research states that the energy storage market could grow to US$546 billion in annual revenue by 2035.

    “VRFB battery projects could be impacted by the virus; there is limited clarity here though even in the best of times,” CRU’s Thomas said.

    Outside of China, he added that ferrovanadium prices have not had much impact from the virus fears — yet.

    “Volume of spot business has been a little light over the last couple weeks, and prices have been a bit softer,” he said. “Some buyers seem to be waiting to see how the demand picture, excluding China, for steel looks before buying more input inventory.”

    For Thomas, there’s no doubt that the most significant development in the vanadium space in the first quarter of the year, aside from the coronavirus developments, has been the return of prices to above the short-run cost floor.

    “This should not be confused with price gains based off of demand growth,” he said, adding that this quarter’s price positivity is more about the cost floor than it is demand growth or supply constraints.

    “Prices are, give or take, still near the lowest levels that leave producers largely in the black — maybe a little above the level now.”

    But price volatility remains a main aspect of the vanadium market, which is still the biggest challenge for junior mining companies operating in the space.

    “Looking at a historical price chart will give any financier or investor pause in putting money behind a vanadium project,” Thomas said.

    Don’t forget to follow us @INN_Resource for real-time updates!

    Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

    Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

    vanadium investingchina
    The Conversation (0)

    Go Deeper

    AI Powered
    Digital globe and battery with lightning icon on dark background.

    Lithium Market Update: Q2 2025 in Review

    Chalkboard with graph showing price, supply, demand and quantity.

    Vanadium Market Forecast: Top Trends for Vanadium in 2025

    Latest News

    Brunswick Exploration Starts Maiden Drilling Program at Anatacau Main

    FPX Nickel Completes Additional Large-Scale Mineral Processing Pilot Testwork to Produce Awaruite Concentrate to Support Discussions with Prospective EV Battery Supply Chain Partners

    Critical Metals Corp NASDAQ CRML Reports Massive Mineralization Extension & Continues Resource Expansion These (3) 2024 Drilling Holes Intercepted Exceptional Rare Earth Elements Grading TREO Range 0.40% to 0.42% & HREO ∼26% Across our Flagship Core Asset Tanbreez in Greenland

    Macquarie Electro Jet Silver Extraction Recovery

    Electric Royalties Reports Increase in Copper Royalty Revenues from Punitaqui and Provides Updates on Other Key Royalties

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Battery Metals Stocks

    QEM Limited

    QEM:AU

    Ucore Rare Metals

    UCU:CA
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×