India: Ferro vanadium prices decline due to weak downstream procurement

• Weak steel demand dampens ferro vanadium trade
• Producers hold on to offers amid margin pressure

Indian ferro vanadium prices fell by INR 46,500/t ($492/t) w-o-w to INR 1,351,500/t ($14,312/t) ex-works Raipur in the week ended 24 June 2026. The decline was driven by lower steel mill bidding prices, subdued spot demand and weak raw material support, although producers remained reluctant to offer material at significantly lower levels.

Later, a stainless steel mill was learnt to have concluded a deal at INR 12,80,000/t exw levels too, however, it could not be confirmed from producer’s end at the time of publishing this report.

Factors affecting prices

Steel mill bidding pressure drags market sentiment: The ferro vanadium market remained subdued as steel mills continued to lower procurement prices through fresh tenders, limiting buying interest across the value chain. While end-of-month bidding activity from major mills offered some demand visibility, pricing remained under pressure amid weak profitability in the steel sector. Seasonal weakness in construction activity and sluggish rebar demand further curtailed consumption, prompting most market participants to adopt a cautious wait-and-watch approach.

Producers resist lower offers despite cost-side weakness: Market participants reported improved resistance to further price cuts after the recent sharp decline. Producers remained unwilling to liquidate material at lower levels, citing squeezed margins and difficulties in sourcing low-priced raw materials.

A Raipur-based producer noted that although enquiries remained limited, sellers were holding offers steady to avoid additional losses. Meanwhile, vanadium pentoxide prices remained weak, offering only limited cost support and restricting any meaningful recovery in ferro vanadium prices.

Outlook

India’s ferro vanadium market is expected to remain range-bound in the near term. Producer resistance may provide downside support, but weak steel demand and soft raw material fundamentals are likely to keep sentiment cautious and limit any significant price recovery.