The downstream demand of ferrovanadium is expected to decrease and the domestic price of ferrovanadium may stop rising [SMM analysis]

SMM11 March 18: according to SMM, ferrovanadium prices have continued to rise recently, and today's mainstream spot trading price of ferrovanadium is 12-122000 yuan / ton, up 2500 yuan / ton compared with Monday's price.

Picture: recent price trend of ferrovanadium

The main reason for the price rise in the domestic vanadium market is still due to the reduction in supply, according to SMM, Chuanwei's production reduction has increased to 400,500 tons due to the influence of national policies, environmental protection policies and other environmental policies, so the supply of vanadium has decreased again, and the price of vanadium has risen again, which in turn leads to the strengthening of the cost support of ferrovanadium downstream, with the price rising, and Chuanwei said that the exact date of the overhaul and resumption of production in March is unknown. )

However, according to SMM, ferrovanadium prices may stop rising next week, the reason is that as its main downstream plate steel mills are mainly concentrated in the north, northeast and North China. The output of steel mills has been reduced due to factors such as the Winter Olympic Games, air pollution restrictions in autumn and winter, and the reduction of crude steel production. At the same time, the price of sheet metal has plummeted recently, and the willingness of manufacturers to purchase and produce has been reduced, so the demand for ferrovanadium may be reduced in the future.

SMM predicts that with the decline in downstream demand, the overall bullish sentiment in the market may cool down, so domestic ferrovanadium prices or awards may stabilize or even fall next week.