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Some vanadium producers have left the market since prices have been falling. Traders have been taking profits and lowering their offers to stimulate sales. Let’s learn more about the cost of vanadium.
Vanadium Cost
Vanadium is not publicly traded; private agreements between buyers and sellers are made.
Ferrovanadium (FeV) and vanadium pentoxide (VPO) are the two most common commercial forms of vanadium. Some vanadium compounds are made with vanadium pentoxide, which has uses outside of the metals industry. Ferro-vanadium, on the other hand, is a metal alloy that contains vanadium.
Historically, vanadium has sold for $20-30 per kilogram, with current values hovering around $25 per kilogram. Due to its scarcity, vanadium’s price fluctuates widely. Because of China’s major position in supply and manufacturing, for instance, a change in the country’s steel production rates can affect the price of vanadium worldwide.
Price Trends
Several vanadium compounds are on the market, including vanadium pentoxide, ferrovanadium, and vanadium nitrides. Vanadium pentoxide, often known as V2O5, is a crystalline chemical typically sold by the pound in the United States. As the demand for vanadium rose, the price of vanadium pentoxide skyrocketed to $29 a pound in November 2018.
China’s new regulations to strengthen steel rebar were a major factor in driving up the spot price of vanadium in that country. The vanadium market in 2018 was greatly boosted by China’s new rebar standard and the central government’s particular steps to reduce the production of low-quality steel.
Their prices decreased to roughly $5 per pound in November of 2019 when the fresh rebar standard was not rigidly enforced as predicted when it was first announced. Also, Vanadium prices rose at the beginning of 2021 due to rising demand, shrinking supplies, and rising confidence in the metals and industrial sectors.
Vanadium demand is strong in China’s infrastructure sector in the wake of the nation’s new rebar standards, and the price of vanadium pentoxide has stabilized recently at roughly US$ 8 per lb. Vanadium redox flow batteries (VRFBs) may function as fuel cells or rechargeable batteries, making them a major new driver of world vanadium demand.
The global move to renewable energy sources is anticipated to spur new VRFB installations.
Price Performance
According to Willis Thomas of CRU Group, who spoke with INN. Vanadium prices spiked due to fears that the conflict could interrupt supplies from Russia.
“While V2O5’s price was showing strength entering 2022, reaching well above US$10 per pound was not expected,” he said. Prices have dropped from their recent highs because worries about a supply shortage have been alleviated, but “this level was crossed.”
The conflict between Russia and Ukraine dominated headlines as the year’s first quarter progressed. EVRAZ is a great vanadium manufacturer with properties in Russia and the Czech Republic, and Roman Abramovic, the company’s largest stakeholder, was slammed with sanctions. As a result, the entire board resigned in protest.
As the conflict between Russia and Ukraine continued into the second quarter. The market shifted its focus from supply risks related to the conflict. To demand risks related to the impact of China’s lockdowns on the sector. Steel production limitations in China were implemented owing to the Winter Olympic Games and extended COVID-19 shutdowns. And have resulted in “lower than expected demand in China,” according to Bedder.
Take Away
Vanadium redox-flow batteries (VRBs) are a major possibility for future vanadium usage. Their commercial prospects are influenced by Chinese high-strength rebar standards in the steel industry. And the rising need for large-scale electricity storage.
