NEW YORK — Ferrovanadium prices have risen again in the U.S. market, prompted by what some say is a tightening of global supply.

"The prices that have a 12 in front of them are over," one market source said.

Spot prices are now between $13 and $13.50 per pound, up from $12.50 to $13.50 previously, with inter-trade business for small volumes reported at both ends of the range. A Midwest steelmaker reportedly bought a truckload of material at around $13.50 per pound in the past week.

Sources said the rise in prices comes at a time of global tightness for vanadium due to increased usage in China, which is the result of the enforcement of legislation mandating more vanadium content in rebar (amm.com, Dec. 7), as well as some tightness in spot material at large producers.

In Europe, prices have risen to $31.50 to $32.50 per kilogram ($14.29 to $14.74 per pound) as a result, and some expect the U.S. market will move to similar levels in the near future.

"The people that were calling for ferrovanadium at $15 per pound last year may finally be right," one trader said.

One consumer source, however, questioned whether the global situation would affect domestic prices. "The ferrovanadium market is always said to be tight, but in the end everybody always seems to be able to get material," he said.