Global vanadium output forecast to rise

Global vanadium output is expected to rise by 20,000t of vanadium pentoxide equivalent this year following the launch of new projects, said Chengde vanadium and titanium research centre director Cheng Donghui.

Production increases this year will come from Russia's Evraz with 1,600-2,400t, China 18,000-22,000t, the US' White Mesa Mill 900-1,800t, Brazil's Largo 170-1,170t and South Africa's Bushveld Vametco with 700-800t, Cheng told delegates at the 9th international vanadium industry summit in Xi'an, Shaanxi province.

China's output rises by region this year include Heilongjiang with 4,000-5,000t, Liaoning 1,000t, Chengde 6,000-7,000t, Shanxi 1,000-2,000t, Henan 1,000-2,000t, Hubei 1,000-2,000t, Jiangxi 1,000t, Hunan 1,000-1,500t and Sichuan with 4,000-5,000t.

Demand continues to weaken in China on lower buying activity from steel producers, an increase in use of alternative supplies and a fall in exports. China's enforcement of the new standards of reinforcement steel bar (rebar) has been lax and around 30-40pc of steel mills, mostly smaller ones, have not fully switched to the new rebar standards.

Many steel producers, particularly in the high-performance and specialist steel sectors, have increased their use of ferro-niobium to substitute ferro-vanadium since last year as ferro-niobium prices are more stable. China imported 35,909t of ferro-niobium in 2018, up by 33.13pc from 2017. It imported 26,500t in the first half of this year, up by 86.92pc from a year earlier.

China exported 2,807t of ferro-vanadium (75pc minimum) during this year's first half, down by 17.9pc from 3,419t in the same period of last year. It exported 2,780t of vanadium pentoxide flake in the first six months of this year, down by 27pc from 3,808t in the corresponding period of 2018. The lower exports are the result of Chinese suppliers reluctance in selling to international consumers because Chinese prices have been at a premium.

China produced 57,000t of vanadium pentoxide flake in the first half of this year, up by 29.54pc from 44,000t a year earlier.