NEW YORK Ferrovanadium
prices have regained strength following a period of declines
amid a tightening in supply.
"Theres a lack of volume
from (some producers) and China is out," one trader said.
Ferrovanadium is now trading in
a range of $12.40 to $13.40 per pound, up from $11.50 to $12.75
A shortage of vanadium pentoxide
in the Asian nation has crimped exports to South Korean
converters, who have been shipping material to the United
States this year.
"Theyve not been getting
conversion contracts. This seems to be related to Chinese
material being more expensive and scarce," one market source
A second trader attributed the
tightness in the Asian nation to a resurgence in steel
production after a correction in inventory overhang and also to
more-stringent quality specifications on rebar in the
countrys 12th five-year plan.
"People have been talking about
that for years but I think were finally seeing the
effects," he said.
Prices could go even higher
soon, the first trader said. "I see them going upwards to the
$14 level," he added.