RE: Annualised production has increased ~94%30 Jul 2020 11:40
@faramog - 100%.
Funnily enough the one bit of the presentation I disagreed with was when they said the global economy is expected to contract 3%. That's such nonsense. It'll be far more. And yes it will have a negative effect on vanadium demand in the sense that less new cars will need to be built, less new planes will need to be built, etc.
Luckily this downturn will result in LOADS of governmental stimulus packages we've never seen before.
The report mentions China wanting to spend $500,000,000,000 on infrastructure investments THIS YEAR - this will require lots of steel. And, as we know, China rebar standards now mean that the steel manufacturers must reinforce their steel. So, as the Chinese steel manufacturers burn through their current stock in an attempt to keep up with this government-backed demand, they will then need to buy more ferrovanadium or ferronobium, driving up demand.
[They won't choose the latter because ferronobium is inferior quality substitute to ferrovanadium AND it is more expensive at present - the only reason this was used is because vanadium reached sky high prices, hence why there will be substitute reversal]
In addition to the Chinese govt stimulus package, the EU have announced a huge stimulus package, we have Joe Biden talking about spending $2 trillion as part of a big Green Energy deal, and there will be even more elsewhere (Japan has just made a huge VRFB this month, Australia's green energy demand is growing fast, and there will be so much more!)
All of which will probably mean vanadium demand and prices goes up even though less cars/planes shall be made. Hence why I'm bullish about vanadium prices increasing significantly from where they are now.
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