Semiyearly Report on Vanadium Market

1.    Review on Vanadium Market for the first half year of 2017

Vanadium Market showed firstly drop then rise for the first half year of 2017. Prices of vanadium products for a period of February and March after The Spring Festival became weak; prices of Vanadium-nitrogen Alloy and Ferrovanadium began to show rise in the midmonth of March; along with sharp rise of price of platy vanadium pentoxide, prices of vanadium series products rose sharply; price of vanadium-nitrogen alloy rose to a high level in May, and its price has a larger drop again; Ferrovanadium price rose to a high level then its price dropped slightly; after long-term firm in platy vanadium pentoxide market, its price became slightly loose.

(1) Chinese prices of Vanadium products for the first half year of 2017

Prices of vanadium products for a period of February and March after the Spring Festival became weak; inventory of social Vanadium-nitrogen Alloy was more and the supply exceeded the demand, because suffered by the serious suppress by the steel mill, price of bid inviting of steel mill dropped obviously, but the supply of Platy vanadium pentoxide is tenser, and under the union support price of platy vanadium pentoxide, its price only dropped slightly, and production of enterprises of vanadium alloys faced upside-down risk, and the market mainly consumed the inventory. Along with the consumption of supply of goods at a lower price, increase of demand of platy vanadium pentoxide, prices of Vanadium-nitrogen Alloy and Ferrovanadium began to show rise in the midmonth of March; along with sharp rise of price of raw material platy vanadium pentoxide, prices of vanadium series products rose sharply; price of platy vanadium pentoxide rose to a stable place until May, and price of Vanadium-nitrogen Alloy reached to the highest for the first half of the year, because suppressed by the steel mill again, Vanadium-nitrogen Alloy affected largely, and its price dropped largely again; Ferrovanadium market the latercomers surpassed the formers, , prices of Ferrovanadium had a larger rise following large rise of prices of Vanadium-nitrogen Alloy and Ferrovanadium; and after weak trend in vanadium market, price of Ferrovanadium drooped to a small extent, and the Ferrovanadium market showed relatively stable.

(2) Production of Vanadium products for the first half year of 2017

The Spring Festival was in a period of January and February, production of each vanadium product was lower, and production of Platy Vanadium Pentoxide gradually increased month by month after February. Production of Vanadium-nitrogen Alloy was the lowest in March, resulting from more inventory of Vanadium-nitrogen Alloy in society and the supply of goods at a lower price in the bulk market in the earlier period, and suffering from the oppression of steel mill, in order to lower the social inventory quantiy, plants of protected the furnace or decreased the production; in June, because the price Vanadium-nitrogen Alloy was suppressed by steel mill again, and price of Platy Vanadium Pentoxide located at a higher level, there were some Vanadium-nitrogen Alloy plants protected the furnace or decreased the production. In May, Ferrovanadium, affected by the environmental protection and inspection, some plants decreased or stopped the production, and its production was at a lower level.

(3)  Bid inviting price of steel mill for the first half year of 2017

For a period of February and March after the Spring Festival, inventory of social Vanadium-nitrogen Alloy was more and the supply exceeded the demand, seriously suppressed by steel mill, price of bid inviting of Vanadium-nitrogen Alloy dropped sharply. Until April, along with sharp rise of price of platy vanadium pentoxide and gradual consumption of supply of goods at a lower price, prices of bid inviting of  steel mill of vanadium products rose then. In May, because price of Vanadium-nitrogen Alloy rose to a higher level and some enterprises also had a certain profit, the downstream steel mill suppressed the enterprises again, and price of bid inviting of Vanadium-nitrogen Alloy dropped below RMB 150,000/ton. Price of Ferrovanadium changed along with the change of market, and its price showed slowness than Vanadium nitrogen Alloy, and its price of bid inviting of steel mill was relatively stable.

(4) Export statistics of vanadium series from January to May of 2017

Vanadium resource is rich in China. Platy Vanadium Pentoxide was mainly exported to Korea, Netherlands, America and Japan. Vanadium-nitrogen Alloy was mainly exported to America, New Zealand, Australian and India. Ferrovanadium was mainly exported to Netherlands, Chinese Taiwan, Korea and Japan.

 (5) Import statistics of vanadium series from January to May of 2017

Platy Vanadium Pentoxide was mainly imported from America and Japan; Vanadium-nitrogen Alloy mainly imported from South Africa and ferrovanadium mainly imported from Japan.

2.    Prediction for vanadium market of the second half year of 2017

vanadium market experienced a sharp rise in the first half year of 2017, because there were not much raw material resource, many traders were reluctant to sell out, and production was in an increase status, social inventory of Vanadium-nitrogen Alloy was more, real estate market tended to be weak that demand for vanadium products decreased, price of vanadium alloy was suppressed by steel mill, and profit of steel mill maintained at a higher level. It is expected that rise space of price of Platy Vanadium Pentoxide will be limited, and it is difficult to have a large rise, and rise extent of prices of Vanadium-nitrogen Alloy and Ferrovanadium will not be large and be relatively stable compared to the fluctuation of the first half of the year of 2017.

• [Editor:Wang Linyan]