[ferro-alloys.com] Vanadium market formally enters in a weak status following cut offer by Flaky Vanadium Pentoxide enterprises since the beginning of this week. Suppressed by invitation for bids from steel mill, vanadium alloy prices were down, and demand from steel mill was not good that reversed raw material enterprises to cut their offers.

Flaky Vanadium Pentoxide was mainly quoted at RMB 185,000 to 195,000/mt, and its conclude d price was mainly at RMB 180,000 to 185,000/mt. Ferrovanadium was mainly quoted at RMB 190,000 to 200,000/mt and vanadium-nitrogen alloy was mainly quoted at RMB 275,000 to 295,000/mt. Actual concluded price of spot goods tended to be weak, selling activity of Flaky Vanadium Pentoxide enterprises has increased, however, the sellers were waiting and seeing, they had less demands and there were not much transaction. There was little demand for Ammonium Metaborate and its price dropped more, difference in offers from traders and plants was large. Vanadium alloy enterprises had sold fewer goods, and plants were in a dilemma, and most of them did not recover production, traders holding scattered Ferrovanadium at low price were willing to sell goods at a lower price but a transaction is still difficult to be concluded; currently, under the weak atmosphere, purchasers are cautious to purchase goods.

Laigang called for bids of 20 tons ferrovanadium in September and the price was RMB 198,000/mt (acceptance including VAT); KISC called for bids of 30 tons vanadium-nitrogen alloy in September and the price was RMB 270,800/mt(cash including VAT). Bid inviting price of ferrovanadium was relatively stable and that of vanadium-nitrogen alloy was still relatively weak. 

Pangang announced the offers on September 4 again, ex-work acceptance price including VAT of Ferrovanadium 50% was at RMB 190,000/MT and that of vanadium-nitrogen alloy was at RMB 280,000/MT.

Because the international price was low, and china vanadium exporters lost their interests in the overseas market, and export volume reduced remarkably MOM, driving competitive advantage of international vanadium products, and the international vanadium prices was still up while China Vanadium price dropped. European ferrovanadium ≥78% price rose to 44-49.5 US/kg vanadium and vanadium pentoxide ≥98% price rose to 11-11.25 US/ pound vanadium oxide. 

Currently, raw material resource is still not much in the market, and part raw material enterprises believed that drop of vanadium price was normal after rose sharply, invitation for bids from steel mill consumed part inventory in the market, coupled with rate of operation in the market being in a lower level, source of vanadium was still in a relatively tense status in general, so they are not pessimistic for the drop of prices of vanadium products at present, even keeping optimistic attitude on the long-term development of vanadium. Environmental protection inspection in Sichuan district is over, plants are gradually recovering production, several plants plant to recover production in the first half of September, along with the increase of supply, price of vanadium may continue to drop and it is expected that vanadium market will continue to be weak in a short term. 

• [Editor:Wang Linyan]