Vanadium market news30 Dec 2023 08:40
Vanadium market news
On December 14, Fastmarkets reported (emphasis added):
The US House of Representatives Select Committee on Strategic Competition between the US and Chinese Communist Party recommended congress to authorize the creation of a critical mineral “Resilient Resource Reserve,” it said in a report with around 150 policy recommendations published on Tuesday December 12. The adoption of such a reserve is intended to “insulate American producers from price volatility and (the People’s Republic of China’s) weaponization of its dominance in critical mineral supply chains,” according to the report. Such a reserve would be used to sustain the price of a critical mineral when prices fall below a certain threshold and would be replenished through contribution from companies when prices are “significantly” higher, the report stated. The fund would target critical metals where there is high price volatility, low US domestic production and import dependence on China. Cobalt, manganese, light and heavy rare earths, vanadium, gallium, graphite, germanium and boron are critical minerals that fall under that category, according to the report.
Note: Bold emphasis by the author.
On December 14, Investing News Network reported:
Vanadium Market Forecast: Top trends that will affect vanadium in 2024... CRU expects to see lower Chinese crude steel production being more than made up for by global production outside of China. “This increase year-over-year will support vanadium demand, though much crude steel production gains will be seen in markets with traditionally lower vanadium intensity, though intensity will rise through the forecast to 2030 in these markets,” Thomas noted. Project Blue also believes that the downside to demand will be very limited...While Project Blue doesn’t see much demand upside coming from Europe, the market may experience an uptick in Chinese demand as early as Q1 2024, spurred on by a rebound ahead of the Spring construction sector. This would prove price supportive, the analyst team explained. “Vanadium inventories are currently low and any demand recovery could also trigger some restocking,” they said. "(However,) this largely depends on the effectiveness of any Chinese economic stimulus measures”...According to CRU research, demand growth for vanadium over the next decade will largely be driven by the rising installation of VRFBs. For its part, Project Blue relays that much of the VRFB capacity installed globally in 2023 happened in China, and that trend is expected to continue in 2024. The Chinese government is highly supportive of VRFB technology for long-duration energy storage.
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