NEW YORK Ferrovanadium contracts for 2013 have largely been settled, and sources say that discounts to published prices have fallen from last year.
"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 vanadium pentoxide.
"The Chinese government is forcing a higher consumption of vanadium in rebar. (As a result), vanadium pentoxide has been pushed up," one trader said.