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 previously.
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 said.
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.