|The TEX Report / Topics|
|[ Topics List / October, 2004 / Friday, 15 ]|
|*Price Of Ferro-Vanadium Is Approaching Higher One Seen In 1998|
|= Fe-V Was Actually Sold At US$30 / Kg. In Europe, Being Stimulated By Cutback Of Production In Russia|
The price of ferro-vanadium has risen steeply. Reflecting an information which Tulachermet, a major producer of vanadium in Russia, has entered into the work for maintenance in October and will reduce their production of vanadium by 30%, the price of ferro-vanadium in Europe has rebounded. As a matter of fact, it is reported that ferro-vanadium was actually sold at US$30 per kg. in Europe.
Since the price of ferro-vanadium in January of 1998 recorded US$31 per kg., this price of US$30 has reached a higher level after an interval of 6 years. The soared price of ferro-vanadium in 1998 had been caused by a trouble of the production in Russia. For a reference, the highest price of ferro-vanadium recorded in its history was US$52 per kg. seen in 1989.
Ferro-vanadium is a representative existence among the depressed commodities and its primary production has no power to compete on sales. Therefore, the primary producers of ferro-vanadium were compelled successively to withdraw from the production. In recent years, the Windimurra vanadium plant of Western Australia ( with capacity to produce 17 million lbs. per annum of vanadium ) stopped to produce vanadium by January of 2003 and Vantech of South Africa ( with capacity to produce 12 million lbs. per annum of vanadium ) withdrew from their vanadium production by January of 2004. This South African company was originally a specialized producer to extract vanadium from vanadium ore. An overwhelming part in supply of vanadium depends on vanadium generated as by-product in the process of producing pig iron.
The world output of crude steel in 2004 is estimated at 1,000 million tons but, as far as vanadium is concerned, the production has inclined to shrink. China was a country to export vanadium until 2003 but, as the demand for vanadium from domestic market is increasing, has turned to import more vanadium. Consequently, the export and import of vanadium in China have transformed to be balanced. In the first half ( January - June ) of 2004, China imported 1,035 tons in material of ferro-vanadium and exported 1,195 tons in material of ferro-vanadium, resulting in a balanced situation. Also, China imported 2,786 tons in material of vanadium oxides and exported 1,812 tons in material of vanadium oxides in the first half of 2004, having changed to an excess of the import. China was a source to supply vanadium to the western market but has become thin on their ability.
As regards the source for vanadium, any project to increase the supply of vanadium is so far not seen. The project to extract vanadium from waste catalyst has been informed from the oil industry. A scale of the production is not so large but, in view of higher prices for vanadium products at present, it is expected to enlarge this project. However, apart from some projects, remarkable plans for new production of vanadium seem to have exhausted. This aspect is due to the fact that, when prices of vanadium products have been depressed, raw material is allowed to be received on free of charge but, when these vanadium prices have risen steeply, an anxiety to have to receive raw material for counter value will arise.
The movements on price of ferro-vanadium during 1983 to October 2004 were as per the table shown below.
|last modified : Wed 20 October, 2004 [10:37]|