Vanadium Market Update (April 20, 2012)

By Karan Kumar — Exclusive to Vanadium Investing News

Chinese vanadium pentoxide V2O5 98 percent prices were between 74,000 and 76,000 yuan a metric ton on April 19, according to data from Metal-Pages. Prices have been in that range since December, and are down from the 82,000 yuan a ton level seen in October 2011.

The range for US spot ferrovanadium prices widened to $15 to $16.60 per pound on April 19 compared to $15.50 to $16.50 a pound a week ago. Chinese ferrovanadium 50 percent prices remained thin because demand from steel mills has not increased. Chinese ferrovanadium prices remained in the range of 84,000 to 85,000 yuan a ton on April 19, much less than the 94,000 yuan a ton seen in October of last year.

Demand for ferrovanadium from steel mills in China is weak because the market is being squeezed by a vanadium-nitrogen alloy. “It has been difficult to do business as steel mills have realized that vanadium-nitrogen alloy is better, as it helps reduce vanadium consumption in steel production by 30 to 50 percent and the result is a 10 percent drop in operating costs,” Metal-Pages quoted a source as saying.