Bron Ryan notes 10.6
FeV prices stall; eyes on China
On June 10, 2020 By Alice AgoosIn Uncategorized
The US and European spot FeV markets were so quiet that it was impossible to gauge price levels. A consumer inquiry is likely to set off aggressive offers, traders say. In the meantime, FeV prices are unchanged at slightly under $10 per lb in the US and around $24 per kg in Europe.
China continues to attract the most attention because domestic prices are so much higher than those in Europe.
The maintenance shutdowns at China’s three main producers are coming to an end, and while supply could be seen as “slightly snug,” that will not be the case going forward, said a Chinese source.
As soon as the supply tightness in China disappears, said one trader, domestic prices will drop.
The maintenance shutdowns in May/June are expected to cost the market 10% of Chinese production, according to some estimates, but China’s vanadium exports also have dropped because of low demand caused by Covid-19 elsewhere in the world.
In contrast, rebar production in China has been high in March and April helped along by stimulus spending and also by resumption of economic activity in general.