NEW YORK Ferrovanadium
contracts for 2013 have largely been settled, and sources say
that discounts to published prices have fallen from last
"Except for one of our
(multiyear) contracts, the other discounts were substantially
lower," one supplier source said.
A second supplier confirmed that
he had seen discounts decrease on most of his contracts.
Discounts for 2012 were reported
in the double digits, and while there was still talk of some
discounts below that for 2013, most contracts seem to have
settled below that level.
"Theres absolutely a lot
of stuff being offered and accepted at single digits," the
first supplier said.
Part of the reason for the lower
discounts might be that the ferrovanadium spot market has been
more active in 2012, as some consumers unable to get contracts
have had to go out on the spot market, sources said.
"This year was tight in a number
of ways," the first supplier said.
There was little activity in the
spot market this past week, but sources again referred to the
looming threat of global tightness due to a shortage of Chinese
"The Chinese government is
forcing a higher consumption of vanadium in rebar. (As a
result), vanadium pentoxide has been pushed up," one trader