- Raw material shortages support ferro vanadium prices
- Steel mill tenders in China lead to marginal improvement in market activity
Indian ferro vanadium prices increased w-o-w by INR 14,500/t ($152/t) in the assessment week ended 5 August 2026 to INR 1,351,500/t ($14,164/t) ex-works Raipur, supported by constrained raw material availability and firm seller sentiment.
Factors affecting prices
Raw material shortages tighten domestic ferro vanadium supply: The recent price increase was primarily driven by limited availability of vanadium-bearing raw materials, which tightened domestic ferro vanadium supply and increased replacement costs for producers. With input availability remaining constrained, manufacturers largely focused on fulfilling existing commitments, limiting spot market availability and supporting higher offers. Global vanadium markets have also been influenced by tight supply fundamentals, keeping feedstock costs elevated.
A major producer told BigMint: “Raw material availability remains tight, and procurement costs have increased. We are offering limited spot volumes and expect prices to remain firm unless feedstock supply improves.”
Chinese market offers limited directional support: Although a fresh round of steel mill tenders in China improved market activity marginally, the overall ferro vanadium market remained range-bound amid weak downstream demand and cautious buying. The absence of strong demand recovery has limited upside momentum, while elevated raw material costs continue to prevent significant price corrections. This balanced market environment is also influencing sentiment in the Indian ferro vanadium market.
Outlook
Indian ferro vanadium prices are expected to remain firm with a positive bias in the short term, supported by continued raw material tightness and disciplined seller offers. However, any substantial upside may depend on stronger procurement from alloy steel producers, while easing feedstock availability could cap further price gains.
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