NEW YORK Ferrovanadium prices have weakened as sellers aggressively chase spot sales amid relatively stale demand.
Ferrovanadium dropped to a range of $11.20 to $12.20 per pound from $12.50 to $13 previously.
One consumer encountered "very aggressive" bidding recently after putting in a request for quotation for several truckloads. "I think there are a few people really looking to move some material," he said. "I think its just a slow market and people have excess material."
One trader agreed that bids had dropped "well below $12 per pound for full-truck quantities," with spot sales above $12.20 limited to smaller quantities. "Last week we saw some spot inquiries and I think prices were very aggressive," he said. "The U.S. market remains a bit confused, with some anxious sellers and mostly well-committed producers."
However, traders said that rising ferrovanadium prices in Europe likely would filter through to the North American market.
"I think the U.S. market always follows the rest of the world as we are net importers. The same can be said of Europe, where the price follows China," the first trader said. "Both Chinese and European prices have turned up, and I can only believe that the North American market will do the same shortly."
"The vanadium price in Europe has come up, so I think theres a little more optimism right now," a second trader said.
A third trader said that while spot trading activity remains infrequent, his companys contract volumes have been at their best level since 2011.