India: Ferro vanadium prices decline further on weak demand

• Weak special steel demand from mills weighs on prices
• Comfortable inventories keep market under pressure

Indian ferro vanadium (FeV 50%) prices fell by INR 30,500/t w-o-w to INR 1,244,000/t ($13,424/t) on 9 September. Weak special steel procurement by the mills and comfortable availability continued to pressure sentiment. However, Chinese ferro vanadium market sentiment provided limited external support.

Weak special steel demand limits procurement

Steel mills remained selective in ferro vanadium procurement, with fresh buying largely restricted to immediate requirements. Subdued order flow reflected limited urgency among alloy and special-steel consumers, keeping spot activity thin.

Market participants continued to adopt a wait-and-watch approach as buyers avoided larger commitments amid uncertain downstream demand. Although broader Indian steel sentiment has improved with expectations of post-monsoon restocking, this recovery has yet to translate into stronger ferro vanadium procurement. The resulting demand softness continued to weigh on seller confidence and kept market sentiment under pressure.

Comfortable inventory levels keep buying selective

Inventory availability remained comfortable, reducing the urgency among consumers to rebuild positions aggressively. Buyers focused on managing existing stocks and delaying fresh commitments until clearer signals emerged from steel consumption and alloy requirements.

This restrained spot enquiries and limited transaction momentum, leaving sellers with reduced leverage in negotiations. Earlier market assessments also highlighted elevated mill inventories and optimisation of alloy consumption as factors reducing fresh ferro vanadium requirements. Consequently, domestic sentiment remained subdued even as international market indications showed some improvement.

Outlook

Ferro vanadium prices may remain under pressure near term as domestic buying stays selective. Improved steel demand, restocking and stronger international vanadium values could support sentiment and stabilise prices ahead.