sellers are being forced to let small quantities of material go
at lower and lower prices as demand all but disappears.
Smaller quantities traditionally
fetched a premium to compensate for freight and financing
costs, but this is no longer the case, a trader said on the
sidelines of AMM sister publication Metal
Bulletins 28th International Ferro-Alloys Conference
Because business is so scarce,
market participants are selling whatever quantity they can at
whatever price they can, the trader said. "Vanadium is really
difficult. Theres nearly no demand, and there are only a
few people able to offer (as much as) 20 tonnes."
Deals have been done at the
midpoint and toward the lower end of Metal
Bulletins price range of $23.90 to $24.50 per
kilogram ($10.84 to $11.11 per pound) for quantities of just a
"Its mostly 3, 5, 6
tonnes, and smaller quantities are sometimes cheaper than the
bigger ones," the trader said. "If you ask for 1 or 2 tonnes,
there are 20 players in the market and they all have to
(compete) for the same contract."
The situation is unlikely to
improve as the global macroeconomic environment remains
unstable, particularly in Europe. "I dont see any
increases before the end of the year," the trader said.
A version of this article
was first published by AMM sister publication Metal