Date: Feb 26, 2019
Chinese ferro-vanadium exporters continued to raise their offer levels last week after prices were bolstered by strength in the country’s domestic market, while the European ferro-vanadium market tumbled amid sluggish spot activity.
- Chinese exporters increase offers following domestic market strength
- European FeV market softens on weak spot demand
- European V2O5 flat amid limited trading activity
- US FeV prices hold, market absent of activity
Fastmarkets assessed the export price for ferro-vanadium, min 78%, fob China, at $74-76 per kg on February 21, up by 3.1% from $70.50-75 per kg a week earlier.
Many Chinese ferro-vanadium exporters raised their offer prices last week despite sparse inquiries from abroad after realizing that equivalent prices in the domestic spot market were close to or in some instances had even surpassed their export levels, Fastmarkets understands.
“It’s really strange that we did not receive many inquiries this week since there should be a round of restocking from overseas market after the week-long Lunar New Year holiday (February 4-10). But there is no way for us to surrender too much on our offer price due to the appreciation in the yuan and rising domestic spot prices,” a Chinese ferro-vanadium exporter said on February 21.
“The export market has not been as attractive as what it was in the past few weeks. Since we do not have many stocks at hand, there is no hurry to selling [in the export market]. If we fail to conclude any deals there, we will turn to the domestic market where the price is not too bad now,” the exporter added.
Some domestic steel mills in China raised their March tender prices for ferro-vanadium last week, which buoyed sentiment in the country’s domestic market, sources said.
Despite the bullish market sentiment prevailing in the domestic market, many market participants believe this round of price rise would be much reasonable.
