NEW YORK The rise seen
this year in domestic ferrovanadium spot sales could come to an
end in 2013, as some mills that have been actively buying
prompt material are once again looking to lock in contracts,
market sources told AMM.
"It (the increased activity)
wont be for long," one market source said, adding that at
least one mill that has been active in the spot market this
year is looking to secure contract tonnage for next year.
Mills not covered by contracts
have occasionally been buying material well above published
prices, while contract business for the material is mostly
based on discounts to published prices.
"I think we should expect that
they would try" to lock in contracts, a second market source
said. However, the source added that no long-term business has
yet been concluded.
Increased spot sales drove
prices up to between $15 and $16 per pound in mid-March, the
highest level seen since the beginning of July 2010.
Since then, tags have softened
as demand has waned, and prices continued to fall this past
week to between $11.50 and $13.20 per pound from $11.50 to
$13.50 per pound previously.
A domestic mill was said to have
bought significant quantities of material at the upper end of
the range, and inter-trade business was reported toward the
"This mill (that bought at the
upper end of the range recently) was uncovered," the first
market source said.
Ferrovanadium tags have been in
a wide range this year due to the increase in spot sales. Large
sales are often concluded at higher numbers, while sellers
compete vigorously at lower prices for smaller quantities.