Vanadium pricing28 Dec 2018 00:03
A few snippets from a couple of V price articles from today.
www.ferroalloynet.com: Chinese vanadium market is gradually stabilizing. Vanadium-nitrogen is trading in a range of 320000-350000 rmb/ton with tax by cash and the trading volume is rising. Thus, the suppliers show more reluctance of selling at lows and have more confidence about the future market. Recently SISG Laiwu Steel, and Shagang intend to purchase vanadium-nitrogen. FerroAlloyNet predicts that vanadium prices will continum stability in short term and vanadium-nitrogen bidding prices may not be lower than 300000 rmb/ton.
Argus media: Environmental restrictions will continue to curb output of ferro-vanadium and vanadium pentoxide in China, pushing the country toward a net importer. Pangang plans to cut December output for inspections to 2,500-2,600t from the regular 3,300-3,400t. In addition, some producers and recyclers are expected to reduce output by as much as 1mn lbs over the coming year. Stocks of other ferro-vanadium alternatives such as Bushveld's vanadium-nitrogen alloy are expected to ease as earlier production disruptions are absorbed into the supply chain.'
The structural deficit is what investors need to be reassured by. The visitation we are currently in the midst of will be temporary. Many of us have seen this happen here plenty of times before, with similar loud voices trying to call the top in the midst of unusual trading activity. And yet here we are at 37p from 1-2p.
V traders are clearly showing signs they are reluctant to sell stock at these lower prices and there is some stabilisation showing. With the pricing lag we are aware of we know that we will begin 2019 selling vanadium at around twice the price we did at the beginning of last year, with no new supply online and greater demand. The global market (and probably China on its own) still needs 10,000+ tonnes of V extra next year alone - which hasn't just miraculously appeared.
We are, as we were last year and will again next year, beginning the year in the industries quiet period. Trading volume is lower so as with shopping after Christmas, prices see more of a fluctutation which naturally, given the coverage of vanadium of late, will cause some commentators to try and latch on to for a story.
Our patented top-of-the-range product,NitroVan is in demand and selling for a premium, and everyone inside the V industry generally will know that selling stocks of most V products too cheaply is not sensible given the propensity of prices to rise when considered against the current market deficit and naturally cyclical increase in trading volumes ahead.
The market is beginning to blossom for VRFB/electrolyte, and current prices help a compelling story grow at a key time. When you consider the inevitability, appropiateness & need for the technology and the scale as to which it must be adopted, along with the structural deficit you can see exactly why BMN are so confident about their expansion o
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