- Special steel restocking supports ferro vanadium prices
- Higher feedstock costs support seller price expectations
Indian ferro vanadium (FeV 50%) prices edged up by INR 11,200/t ($117/t) w-o-w to INR 1,258,000/t ($13,133/t) on 30 September, supported by improved buying interest and selective restocking from special steel producers amid a gradual recovery in market activity.
Post-monsoon special steel demand supports selective restocking
Improving post-monsoon special steel demand and higher domestic steel prices have encouraged special steel producers to resume selective restocking of ferro vanadium. Buyers are covering immediate requirements amid better market activity, providing modest support to prices. However, procurement remains cautious, with consumers avoiding aggressive inventory building. This measured buying interest has limited the extent of the recent price increase despite improving downstream steel-market sentiment.
Higher feedstock costs strengthen producer price expectations
Higher vanadium feedstock costs have increased replacement costs for ferro vanadium producers, providing additional support to market offers. With input expenses remaining elevated, producers have limited scope to absorb further cost pressure and are maintaining higher price indications. Sellers have consequently become less willing to offer discounts, even as spot buying remains cautious. The combination of higher costs and selective restocking has supported the recent upward price movement.
Outlook
Ferro vanadium prices may remain supported in the near term as special steel restocking and higher feedstock costs underpin offers. However, cautious buying could limit further gains.
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