- Buyers engage in need-based purchases
- Higher feedstock costs limit further downside
Indian ferro vanadium (FeV 50%) prices declined marginally by INR 1,000/t ($10/t) w-o-w to INR 1,257,000/t ($13,123/t) on 07 October, as cautious buying weighed on spot activity despite elevated vanadium feedstock costs.
Cautious procurement weighs on demand
Ferro vanadium buying remained selective as consumers continued to cover only immediate requirements, limiting spot transactions and putting mild pressure on seller offers. Buyers were reluctant to build inventory at prevailing levels, resulting in a marginal weekly correction rather than a broader price decline.
Elevated feedstock costs limit downside pressure
Higher vanadium feedstock costs continued to provide a floor to ferro vanadium prices. China’s FeV50 market was assessed at around RMB 82,500-84,000/t ($11,650-11,860/t) in end-September, while newer market indications have moved towards RMB 87,000-88,000/t ($12,270-12,410/t), keeping replacement costs elevated.
Sellers have shown limited willingness to reduce offers significantly, citing elevated feedstock replacement costs, while buyers remain cautious and continue to negotiate for lower levels.
Outlook
Indian ferro vanadium prices may remain largely stable or slightly weaken in the near term as cautious procurement weighs on demand. However, elevated feedstock costs could limit further downside.
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