Vanadium Market Update (October 17, 2012)

Chinese vanadium pentoxide (V2O5) 98 percent is trading unchanged in October compared to its September average, according to data from Metal-Pages. So far, the average price for October has been between 63,000 and 65,000 yuan per metric ton (US$10,002.05 to $10,320.10), compared with the September average of 63,000 to 65,000 yuan per metric ton. Prices for both months are still well below the 77,000 yuan ($12,225.30) level seen in April and the 82,000 yuan ($13,019.20) level seen in October 2011.

Vanadium pentoxide fused-flake 98 percent minimum in Europe is trading below its September average. For October it has averaged about $5 to $5.25 a pound. In September, it averaged $5.26 to $5.38 a pound. Prices are still significantly below the $6.75 a pound level seen in October 2011.

Chinese vanadium pentoxide flake prices have fallen to their lowest level since 2006 owing to sluggish downstream demand, sources told Metal-Pages. One source said his company has not sold vanadium pentoxide flake 98 percent grade below 63,000 yuan a ton, which is lower than production costs.

Company news

Australia-based Atlantic (ASX:ATI) is considering adding vanadium trioxide and vanadium pentoxide to its production mix, AMM reported. Producing vanadium trioxide would require “minor capital and regulatory approvals” and vanadium pentoxide production would require a “moderate capital investment,” the company states. Atlantic started producing ferrovanadium earlier this year from its Windimurra mine, located about 600 kilometers north of Perth.

Vanadium pentoxide (V2O5) is used in vanadium-flow batteries, which employ V2O5 and are essentially large, liquid-filled tanks used to store energy for power grids. Vanadium trioxide (V2O3) is a high-purity product used in a variety of applications, including chemical and environmental catalysts, gas processing, coloring compounds, batteries, dye fixants and vitamins.

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