NEW YORK Ferrovanadium prices may be poised for an increase as market participants look to rising prices in Europe and issues at Evraz Highveld Steel & Vanadium Ltd.
While high-volume transactions have held steady at $11.20 to $12.20 per pound, traders said that rising European prices would likely filter through to the United States soon.
"Ive been saying to people that prices are going up in Europe and Chinese supply is short, so lets not be silly buggers here," one trader said.
"(A week ago) we were offered material at low $11s and now I cant buy any of it," a second trader said.
Meanwhile, traders said ferrovanadium prices also could be affected by troubled South African vanadium slag processor Evraz Highveld, where labor unrest, low steel prices and production problems threaten operations.
"If that business really is threatened and they go under, pricing will go through the roof. They have a big influence on slag trading and the like, and they certainly are making a lot of bad noises," the first trader said.