Date: Apr 11, 2018
The European ferro-vanadium market retreated last week while traders sold cheaper in order to take profits amid quieting spot demand.
- European ferro-vanadium market slides while traders take profits
- European V2O5 prices strengthen on lack of availability
- US ferro-vanadium market flat lines with market falling dormant
Spot prices for European ferro-vanadiumslipped to $69-72 per kg on April 6, delivered duty-paid in Europe, down from $71.40-73 per kg during the mid-week assessment, according to Metal Bulletin.
Taking their cue from a slower Chinese market, traders in the European market sold at cheaper prices in order to lock in profits before approaching lower prices ahead.
“In Europe, traders are trying to cash out. There is a bit of panic on their part,” a supplier source told Metal Bulletin.
“The cheaper sales reflects the fact that some of the guys who have weaker financing capabilities. If they are sitting on small positions they are liquidating now because they can’t afford to hold onto it long at these prices,” a second supplier source said.
Despite the cheaper sales, market participants indicated that market fundamentals have not changed and fears over sudden weakness are overblown.
“The fundamentals that brought prices to this strength have not changed. The market as a whole is still short units. We are seeing a brief dip on profit-taking, but the market is likely to bounce back again quickly,” a third supplier source said.
