Vanadium prices averaged US$68/kg in March and spot prices are now lower in April. Q1 prices average US$74/kg.
The ongoing tolerance period for new rebar standards in China is the main factor contributing to falling vanadium prices. In addition, higher-than-expected substitution of ferrovanadium for ferroniobium in China (caused by high vanadium prices) has reduced vanadium demand and helped push prices downwards. Ferroniobium imports into China peaked at 7kt in January 2019 but fell back to 3kt in February. High January imports were partly a reflection of steel mills purchasing on an annual contract basis.
With the peak period for Chinese construction still ahead, it remains possible that vanadium prices will stabilise or even begin to increase as the year progresses. Roskill maintains that any sign of strict implementation of new rebar standards will result in higher vanadium demand and thus higher prices. As ever, vanadium prices are likely to be volatile.
Recent developments in the vanadium market include Ferro-Alloy Resources (Kazakhstan) starting trading on the London Stock Exchange and Ferrovan (Finland) deciding to apply for voluntary liquidation.
Roskill’s NEW Vanadium: Outlook to 2028 report was published in March 2019. Click here to download the brochure and sample pages, or to access further information.
To discuss the vanadium market with Roskill, contact Jack Bedder: firstname.lastname@example.org